What it means is simple. When the Federal Reserve is cutting rates and flooding the system with liquidity, you want to be long. When they’re hiking rates and tightening, you don’t want to be the one standing in front of that freight train. The Fed is too big of a player — they tilt the entire game board.

But in 2025, it hasn’t just been the Fed moving markets. Other government bodies have been throwing throwing their weight around in big ways — through legislation, contracts, investments and policy shifts that have re-priced entire sectors almost overnight.

And if this year has taught us anything, it’s that taking aim on these federally-fueled catalysts and position alongside them can be incredibly lucrative.

What has separated us at Masters in Trading is that we’ve learned to spot these moves coming before they hit the front page of Barron’s, CNBC, or Bloomberg.

And if you’ve been trading alongside us this year, you’ve seen how powerful that can be.

MP Materials — When the Pentagon Put a Miner on the Map

Rare earth minerals normally don’t make for flashy headlines, but they’re the backbone of modern technology. Without them you can’t build electric vehicle batteries, you can’t produce the magnets that run wind turbines, and you certainly can’t keep the chip supply chain humming.

The problem is that for decades the United States has been almost entirely dependent on other countries — namely China — to supply these critical materials. That’s a vulnerability the Pentagon simply couldn’t tolerate any longer.

That’s why the headlines out of China and the U.S. last year — rare earth shortages, threats of supply cuts, pandemic-era style disruptions — had my antennae up. When the world’s two largest economies start sparring over materials this essential, traders need to be paying attention. I knew if Washington was serious about securing domestic supply, MP was going to be in the middle of the conversation.

And sure enough, the Pentagon stepped up and wrote a check. That single move flipped the narrative on MP overnight. MP closed one day at $30 and opened the next morning at $50. Wall Street suddenly woke up to the strategic importance of rare earths, but we were ready and waiting.

The payoff was massive — a 534% gainer. James, one of our Masters in Trading All-Access members, woke up to $140,000 in profits from his MP calls. Don booked $55,000.  In total, just a handful of traders in our Discord pulled down a quarter-million dollars overnight. Many others locked in 500%+ returns. It was the single biggest win of the year — and for a lot of folks, the biggest win of their trading lives.

We had a clear thesis — that Washington would have to secure domestic rare earth supply — and a carefully selected target positioned in the one U.S. company perfectly set up to benefit when the check finally cleared.

Of course, these aren’t once-in-a-lifetime setups. They’re repeatable patterns. You just have to know where to look. This is exactly how I teach traders how to think inside my Masters in Trading Options Challenge. If you want to learn how to identify trades like this one — the Options Challenge is where you’ll see step-by-step how pros spot, size, and manage these kinds of opportunities.

Lyft’s Big, Beautiful Catalyst Hidden in the Fine Print

���Ҵ�ýs love a good headline. But sometimes the real market movers are buried in the fine print.

That’s what happened with the “One Big Beautiful Bill” — a thousand-page monster that made news for the flashy stuff like tax brackets and energy credits. What almost nobody noticed was a quiet provision that flipped how U.S. companies expense their R&D.

From 2022 through 2024, companies were forced to amortize R&D over five years. It punished innovation and dragged down reported income. But starting in 2025, that rule was reversed — and not just going forward. Companies could go back to 2022, 2023, and 2024 and expense those costs up front. That meant an immediate boost to GAAP earnings and free cash flow, along with a one-time catch-up that analysts hadn’t modeled.

That’s where Lyft came in. Wall Street had written it off as Uber’s little brother, but Lyft spends around $375 million a year on U.S. R&D. Under the old rules, that spend was dead weight. Under the new rules, it became instant fuel for earnings.

Thirty days before the Street woke up, I wrote an essay to our Masters in Trading community pointing this out. Lyft was my top name on the list. We bought in on July 30th when shares were around $13. By late August, the stock had rallied to $17 — right into its expected move range. That’s when we started locking in some profits.

Why take some off the table? Because 76% of the time a stock closes inside its expected move. That’s discipline. That’s how we manage risk. We don’t get greedy, we get paid.

And the results across our community were incredible. Ernie posted a 158% winner. James made $36,000, a 110% return. Linda banked 150%. Michael pulled 148%. Navi scored 200%. John closed 164% for $3,200 in profit. All on the same trade.

The best part? Lyft hasn’t even fully priced in the catalyst yet. They haven’t highlighted it on an earnings call. Institutions haven’t rerated the stock. But the writing is on the wall. By the end of the year, I believe Lyft trades comfortably above $20.

Once again, this wasn’t about catching a meme move or speculating on a chart breakout. It was about doing the homework, finding the story no one else is watching, and getting positioned before the analysts start chirping.

QXO — The Builder Roll-Up No One Was Watching

So far we have two very different trades — one driven by a $400 million Pentagon contract, the other by a buried accounting change in an omnibus bill — both proving the same point: when you line up with government-driven catalysts, you put yourself in position to reel in outsized gains… and we’re not done yet.

Next we turn our sights toward Brad Jacobs. For the uninitiated, Jacobs is a a serial entrepreneur with a habit of turning boring industries into multi-billion-dollar empires. He did it with Waste Management. He did it with XPO Logistics. And when he launched QXO to roll up the building-supply industry, most of Wall Street shrugged.

But that’s exactly why I loved it. Boring and fragmented is Jacobs’ playground. Backed by deep-pocketed partners — including Affinity and the Kushner family — QXO started raising capital and making acquisitions.

We were there from the start. Our first entries came in around $15. By early summer we’d already ridden multiple spikes to double and triple our option money. We took 180% gains, reset, and did it again.

Now Barron’s is finally catching on. This past weekend, they splashed QXO across a weekend spread and suddenly everyone wanted to talk about it. But by then, we had already rung the register multiple times.

Kratos — The Pentagon’s Hot New Wingman

If MP Materials and QXO proved how powerful it can be to trade alongside government-driven catalysts, Kratos has been the name that showed us how far that theme can run once the market finally catches on.

We’ve had our eye on Kratos Defense (KTOS) for more than a year back when the stock was trading under $20. Then in December 2024, I highlighted why I picked drones as one of my top sectors for 2025. The Pentagon was pouring billions into unmanned systems, NATO allies were boosting their defense budgets, and everyone could see from Ukraine to the Pacific that drones had become the face of modern warfare.

Among the companies in that space, Kratos stood out. While competitors chased high-priced defense contracts, Kratos focused on affordability and scale. Its Valkyrie drone — an autonomous combat aircraft designed to fly alongside piloted jets — became the poster child for that strategy. A low-cost “loyal wingman” that the Air Force could deploy without risking a pilot, and at a fraction of the cost of a traditional fighter.

That’s exactly the kind of platform the Pentagon can’t ignore. And it’s exactly the kind of situation we love at Masters in Trading.

Fast forward to Labor Day Weekend, and KTOS has been nothing short of a breakout star. While most of Wall Street was slow to pick it up, our community had been tracking it for months. We watched it grind higher through December, consolidate, and then rip into the new year. By the spring, KTOS was one of the strongest defense names on the board — a stock that kept trading right up to its expected move, giving disciplined traders clean entries and exits all year long.

Common Ground

Look at these stories side by side.

With MP Materials, the Pentagon flipped the switch. With Lyft, it was a hidden accounting change. With QXO, it was a billionaire rolling up an industry with political capital behind him. With Kratos, it was the drone war playing out in real time with government contracts stoking demand.

Different names, different sectors, same principle: government money bends markets.

And as you’ve seen, the traders who position early — before the analysts, before the media, before the Street wakes up — are the ones harvesting triple-digit returns when everyone else finally catches on.

If you want to keep going down this rabbit hole, my colleague at InvestorPlace, Louis Navellier, is tracking a different angle on the same theme. He believes a looming $7 Trillion Trump Shock on September 30th could set off one of the most explosive — and narrow — bull markets in history. Louis has a handful of A-rated stocks are positioned to capture that flood of institutional money, and he’s set to reveal all of the details during his upcoming Lock & Load event. Follow this link if you want to see where Washington’s next wave of money could land.

Why KRMN Could Be Next

All of this brings me to the next name I want you focused on: KRMN.

Karman is a small-cap defense contractor that builds the stuff that makes missiles fly and rockets launch. Through their Karman Space & Defense arm, they design, test, and manufacture mission-critical hardware — things like payload protection, aerodynamic systems, and propulsion. Basically, if it’s going up into space or screaming through the sky at mach speeds, KRMN probably has a hand in it.

Karman’s growth tells us one thing loud and clear: this company is built to scale — earnings up more than 230% year-on-year. They supply components for over 100 active missile and space programs, making them mission-critical to giants like Lockheed Martin and Northrop Grumman.

Defense spending isn’t shrinking anytime soon. The U.S. budget is expanding, NATO is boosting commitments, and Washington is pushing hard on reshoring critical supply chains. Put those three together and you’ve got a policy environment that practically guarantees steady contract flow for years to come.

Here’s what really excites me: KRMN’s market cap is still under $5 billion. That means we’re in before the herd. But there’s more.

Since April, we’ve watched a massive divergence grow between the Nasdaq 100 and the Russell 2000. Big tech has been ripping while small caps have lagged. That kind of divergence is a coiled spring, and when it releases, it’s small caps that get the explosive move.

Layer in the Federal Reserve hinting at lowering rates, and that’s rocket fuel. Small caps are more sensitive to borrowing costs than the megacaps. When rates fall, balance sheets open up, capital gets cheaper, and these companies get room to expand. That’s why I think we’re about to see a serious rotation out of stretched Nasdaq names into undervalued small caps. And KRMN is sitting right in the sweet spot to benefit.

When I look at KRMN, I see the same ingredients we’ve profited from in MP, Lyft, QXO, and Kratos. A powerful policy tailwind. Deep government ties. A market that’s still sleeping on the story. That’s the exact recipe that’s given us our biggest winners. And I believe KRMN is next in line.

Remember, the creative trader wins,

Jonathan Rose,

Founder, Masters in Trading

The post From Washington’s Wallet to Wall Street Wins: Why KRMN Could Be the Next Triple-Digit Trade appeared first on InvestorPlace.

He wasn’t wrong. After years of inflation, stagnation, and malaise, his pro-growth policies ignited one of the most powerful economic revivals in U.S. history.

The economy expanded at a 7.2% pace that year. You can see 1984’s GDP growth circled in red in the chart below.

Not only that, but also the unemployment rate plunged, and the stock market launched into a historic bull run.

Investors who saw the opportunity made fortunes – the Dow Jones Industrial Average surged 250% during Reagan’s presidency. Companies like Microsoft Corporation (MSFT), which went public in 1986, soared 10,000% in the years that followed.

Reagan’s presidency – especially those early days – was a masterclass in how bold fiscal and policy firepower can reshape both markets and politics.

The payoff for Reagan was enormous: a landslide reelection, a redrawn political map, and a legacy of prosperity that lasted for a generation.

I remember those years like it was yesterday. In fact, I had the pleasure of meeting President Reagan many years ago in Century City, in Los Angeles.

Fast forward to today. Donald Trump is back in the White House. And I have to say, the parallels are hard to miss.

Like Reagan, he’s determined to revive the economy through sweeping, pro-growth action. But this time, the playbook is even bigger.

In his first term, President Trump cut taxes and rolled back regulation, which sent markets surging. What was missing then was the scale of spending and policy moves that made the Reagan boom endure.

But that’s no longer the case. In today’s ���Ҵ�ý 360, I’ll show you how the Trump administration’s new policies could unleash a once-in-a-generation stock market boom.

I’ll also discuss how September 30 is shaping up to be a critical trigger date… and the five “buy”-rated stocks I expect to lead the charge as $7 trillion floods back into the market.

Take a look…

Why This Time Is Different

Trump 2.0 isn’t just a repeat of 2017. It’s something entirely new – and potentially much bigger. This time, his agenda brings together tax cuts, tariffs, and massive federal spending in a way that could rival the Reagan boom.

Consider what’s already on the table:

• Reshoring trillions – Trump is pushing sweeping programs to bring supply chains and manufacturing back to U.S. soil. Some estimates say as much as $10 trillion in onshoring deals have already been announced – that’s a lot of factories, equipment, and jobs returning from overseas.
• Tariffs as revenue engines – Far from symbolic, the tariffs are already channeling billions of dollars into government coffers. Some estimates say they could generate around $2.8 trillion through 2034, which could help ease our spiraling national debt, create fiscal firepower for new spending, or be used to funnel money directly into taxpayers’ pockets. If the Congressional Budget Office’s projection of $4 trillion over 10 years is accurate, maybe all three.
• Energy dominance – Deals to expand domestic oil, gas, and alternative energy projects could reshape America’s energy landscape, while unlocking fresh opportunities for investors.
• Infrastructure on a scale we haven’t seen in decades – Plans in the pipeline dwarf what we saw during President Trump’s first term, with construction, transportation, and defense industries poised to benefit.

Together, these policies are shaping up to create a seismic shift in how money moves through the economy.

Let me be clear: We haven’t begun to see the full scope of the Trump administration’s impact on the market. We’re barely nine months into this thing, folks – so, Trump’s policies are still taking shape.

But as soon as September 30, I believe it will all come to a head and create what I call the “Trump Shock.”

That’s because roughly $7 trillion is sitting on the sidelines in cash, waiting for a signal that it’s safe to move back into stocks.

Now, I explain more about the Trump Shock – and why September 30 is so important – in my brand new investor briefing.

But for now, what you need to know is that President Trump has promised a “boom like the world has never seen.” And he’s desperate to make it happen.

The reason why is simple: President Trump cares deeply about his legacy.

If the Democrats take the House in the 2026 midterms, it will be lights out for Trump’s presidency and his legacy. It would lead to impeachment hearings… special counsels… a rewind of his first term. 

As a result, Trump is pulling out all the stops to produce an economic boom, along with a stock market boom, like the world has never seen.

How We Can Prepare for the Trump Shock

But here’s the key: This will not be a “rising tide lifts all boats” scenario. Instead, it will be the narrowest, most lucrative bull market in history.

Big institutional money won’t spread across the indexes. It will pour into a handful of select stocks with the earnings power to harness artificial intelligence and other transformational technologies. Think Magnificent Seven – but on steroids.

For investors, the lesson is clear: Those who position ahead of the Trump Shock stand to gain the most.

That’s where my Stock Grader system comes in. It zeroes in on the companies turning policy tailwinds and AI breakthroughs into explosive revenue and profit growth.

That’s how we’ve closed out gains like:

• 604% on Vista Energy, S.A.B. de C.V. (VIST)…
• 512% on Sezzle Inc. (SEZL)…
• And more triple-digit wins of 291%, 471%, 351%, 977% – even as high as 1,847%.

And I believe the next wave, driven by the Trump Shock, will be even more powerful.

Why Now Is the Time to Act…

The bottom line is this: September 30 is shaping up to be the market’s moment of truth.

When Wall Street recognizes the scale of Trump’s new agenda – and the trillions of dollars flowing behind it – money will pour off the sidelines at lightning speed. Not across the whole market, but into a narrow group of companies with the earnings power to thrive in this new era.

That’s why I’ve zeroed in on five “buy”-rated stocks I expect to lead the charge in my new special presentation.

These aren’t just “good companies” – they’re fundamentally superior businesses already proving they can harness today’s most powerful trends, from tariffs and reshoring to AI-driven profit growth.

I understand some of you may wonder if President Trump can really deliver the kind of boom Reagan unleashed. But the evidence is already here: record tariff revenues, trillions in onshoring commitments, landmark energy deals, and manufacturing roaring back home.

The pieces are in place – and the political stakes mean Trump will stop at nothing to make it happen. In fact, once the pieces all start coming together, we may even see 5% GDP growth.

That’s why waiting isn’t an option. The Trump Shock could hit like a tidal wave, and those who are positioned ahead of time stand to reap the biggest gains.

Go here to watch my special Trump Shock investment briefing now.

Sincerely,

Louis Navellier

Editor, ���Ҵ�ý 360

The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

Sezzle Inc. (SEZL)

The post How to Profit From the $7 Trillion “Trump Shock” appeared first on InvestorPlace.

A Fed-fueled frenzy in artificial intelligence (AI) stocks promises a windfall for those who play it right. But there’s a catch …

This party is setting up an equally spectacular hangover. 

In other words, enjoy the boom, but be prepared for the bust.

In our latest Being Exponential podcast, we take a look at how this AI frenzy will unfold, starting with some of the best stocks to buy to cash in. Just click the image below to watch now: 

A New Tech Frenzy With a Big Promise (and Bigger Risks)

AI is heralded as the next industrial revolution, and every investor wants a piece of it. Even struggling companies are reinventing themselves with an “AI pivot” to ride the hype. 

Case in point: Opendoor (OPEN) – a beaten-down real estate tech stock – suddenly surged nearly 10x in a matter of months this year. 

The catalyst? Two magic letters: AI. 

A new CEO talked up an AI-powered model, and retail traders swarmed in, some dreaming of a 100× jackpot.

Yet such euphoria carries a warning. When stocks skyrocket on excitement rather than earnings, the eventual crash can be brutal.

History Repeats Itself?

The last time tech investors were this giddy, it was the late 1990s. 

Back then, the internet was the transformative technology everyone bet on – and tech stocks doubled, then doubled again. 

Between 1995 and 2000, the Nasdaq surged five-fold, peaking in March 2000. But then the bubble burst – the Nasdaq plummeted 77% by late 2002 and wouldn’t reclaim its 2000 peak for 15 years.

Today’s market has shades of that mania. AI fever is in full swing. 

Consider: ChatGPT – the breakout AI chatbot – gained one million users in only 5 days, a speed that took platforms like Netflix and Facebook years to reach. 

Companies everywhere are touting AI projects to justify lofty valuations. And tellingly, the Nasdaq’s trajectory in this AI era is mirroring the dot-com bubble’s climb almost step for step.

Cheap Money Chasing Exponential Growth

Here’s a contrarian insight: the fuel for this tech frenzy is coming from an unlikely source – the Federal Reserve. 

Yes, the Fed is about to make the AI boom even bigger. 

How? 

By cutting interest rates in the coming months. 

Lower rates act like nitro fuel for corporate spending. But unlike past cycles, that money won’t flow evenly across the economy… 

It will pour disproportionately into AI.

Think about it: when borrowing costs plunge, companies can raise cash on the cheap. In 2025, no CFO is going to spend that windfall on new office buildings or rehiring workers. The top priority in virtually every boardroom is investing in AI and automation. 

Companies are pouring money into AI not for kicks, but to save money long-term by streamlining operations. In short, cheap money will chase high-tech efficiency, not old-school expansion.

Wall Street’s conventional wisdom says rate cuts will “lift all boats,” reviving laggards like homebuilders or automakers. 

Don’t buy it. 

The reality may be the opposite: easy money will chase exponential growth, not slow growth. 

The coming rate cuts could actually narrow the rally to a few AI-centric winners instead of broadening it. Already, a handful of AI-driven giants are propping up the market while many other stocks lag behind. 

That gap may only widen as capital gets cheaper.

How to Play the Final Stage of the Boom

Yes, easier money may ignite the most explosive year or two for tech stocks yet – a late-stage melt-up of the AI boom. 

But what follows could be painful… 

Every frenzy eventually burns out, and this one will be no exception. Watch for the warning signs: sketchy startup IPOs at crazy valuations, everyone bragging about “can’t-lose” AI stocks, price targets that defy all logic. (Some traders are already fantasizing about 100X gains on shaky meme stocks – a clear sign of late-stage euphoria.) 

When reality catches up – whether through rising costs, bad earnings, or buyer exhaustion – the reversal could be swift and ugly.

The key now is vigilance. You don’t want to miss out on the gains of this ride, but you also don’t want to be the last one dancing when the music stops. 

That means ride the AI wave – stick with quality companies at the heart of the boom – but have your exit strategy ready. 

Enjoy the upside, but set clear rules for when to take profits. If only a few stocks are propping up the market, or if everyone around you is chasing hot AI trades, that’s your cue to start taking some chips off the table.

In sum, a thrilling yet perilous finale lies ahead. 

AI’s promise is real – just as the internet’s was – and it will change the world, so invest in this revolution but do it with a plan. Remember the dot-com lesson: those who cashed out before the crash kept their fortunes, while those who rode it to the bitter end saw their wealth wiped out.

The Fed’s “punch bowl” is about to turbocharge the AI stock party. Enjoy the celebration, but know when to grab your coat – because when the party winds down and the crowd rushes for the exits, only the prudent will keep their winnings.

The post Why Opendoor and AI Stocks Could Be Set to Boom … and Then Bust appeared first on InvestorPlace.

Yesterday, after the closing bell, Nvidia released another blockbuster earnings report:

• Non-GAAP earnings per share: $1.05 (above the consensus estimate of $1.01)
• Revenue: $46.7 billion (a 56% year-over-year gain, beating estimates)
• Next quarter guidance: about $54 billion in sales, comfortably ahead of Wall Street’s estimates
• Buyback announcement: $60 billion in new authorization – a clear show of confidence.

And on the earnings call, CEO Jensen Huang was incredibly bullish about the global AI rollout.

Here’s CNBC:

[Huang] said AI has made “tremendous progress” in the last year and that the build-out of AI infrastructure is still in its early stages.

“As the AI revolution went into full steam, as the AI race is now on, the capex spend has doubled to $600 billion per year,” he said.

“There’s five years between now and the end of the decade, and $600 billion only represents the top four hyperscalers.”

Huang projected $3 trillion to $4 trillion in AI infrastructure spend by the end of the decade.

“The opportunity ahead is immense,” he added.

Despite the fantastic numbers and glowing words, NVDA is trading about 1% lower as I write Thursday.

Why?

Sky-high expectations from Wall Street are running into a slight miss in the data center segment:

• Revenues came in at $41.1 billion vs. $41.3 billion expected
• Sequential data center revenue growth slowed to 5%

Some investors see this as a warning that the torrid pace of AI infrastructure buildout may be moderating (though Huang’s commentary should have pushed back on that fear).

Importantly, management did say the new Blackwell chips (related to data centers) grew revenue 17% quarter-over-quarter. This signals that the transition to this next-gen chip architecture is underway and seemingly going well.

So, this slight data center revenue miss seems more part of a healthy transition than a true drop in demand.

Let’s go to legendary investor Louis Navellier, whose Growth Investor subscribers are sitting on open gains of 4,100%+ in NVDA:

With a heavy load of short-dated calls – roughly 42% of options are daily – option writers often lean against post-print pops, capping upside even when a company beats and raises.

So, just the weight of all the options [that market makers] write holds the stock back. This is not unusual.

Overall, Louis was thrilled with the report. He also highlighted something investors should remember…

Nvidia isn’t yet reporting any H20 sales that have been designed for China. But that’s another $3 to $5 billion in sales per quarter that’s on the way once Washington and Beijing remove the various political roadblocks.

Put it all together and Louis’ bottom line is simple:

Nvidia is a screaming buy right now.

Tech investing expert Luke Lango echoed Louis’ bullishness on Nvidia and expanded it to the broader AI boom.

The AI infrastructure build-out is not slowing.

If you needed more proof, CEO Jensen Huang gave it to you on the call. He said he expects the world’s largest companies to spend $3–4 trillion on AI infrastructure in the next five years, and positioned Nvidia to capture as much as 70% of that spend.

Let’s pause on that: we are not talking about “maybe another year of strong growth.” We are talking about multi-trillion-dollar capital commitments — bigger than the cloud build-out, bigger than smartphones, bigger than both combined.

And those trillions don’t just stop at Nvidia. They spill into the entire AI supply chain: servers, networking, cooling, rare-earth magnets, batteries, robotics, software.

If you want exposure to the largest capex cycle in history, you want AI stocks.

Period.

Bottom line: Today’s subdued reaction to Nvidia’s earnings is little more than a brief “priced for perfection” reset rather than a fundamental shift.

And given the AI-spend numbers that Huang is throwing around, it’s hard to argue with Luke’s takeaway:

It’s rally time for AI stocks.

Earlier this week, the U.S. government acquired a 10% equity stake in Intel by converting $8.9 billion in previously awarded but unpaid grants into stock.

This positions the government as Intel’s largest single shareholder, albeit in a passive role with no board seat or broad oversight.

Behind this decision from the Trump administration is one thing – national security.

Let’s return to Louis:

Intel is still the only American company capable of making advanced chips at scale on U.S. soil.

The West remains heavily reliant on Taiwan, which produces more than 60% of the world’s semiconductors and nearly 90% of advanced chips. If China ever made good on its threats to invade Taiwan, the risks to our supply chain would be catastrophic. (TSMC, for its part, understands this – which is why it’s building new chip foundries overseas.)

By taking a stake in Intel, the U.S. government is signaling it won’t allow the country to depend on one small island within striking distance of our biggest adversary for the chips that power everything from iPhones to AI data centers to missile guidance systems.

Now, this raises a handful of questions…

• Looking forward, who will really be in charge at Intel?
• Is the chip company now “too big to fail” even if it performs poorly?
• How is this not a step over the once-clear line between public and private markets?
• Who is ultimately responsible if this doesn’t work out well?

Time will tell.

But for now, there’s a key takeaway for investors…

Washington’s stake in Intel isn’t just a bailout or subsidy – it’s a declaration that semiconductors and AI are core to national security. This will shape policy, capital flows, and competition for years.

And Louis takes it one step further…

Intel is just the beginning.

This isn’t the first example of the Trump administration taking a stake in a private company for strategic reasons.

In a live broadcast back in July, Louis profiled five small rare-earth metals companies that are in the crosshairs of potentially hundreds of millions – even billions – of dollars’ worth of investment capital.

He also revealed one of his top picks to attendees for free – MP Materials (MP).

The very next morning, the Pentagon announced a $400 million investment into MP Materials, instantly positioning the company as a strategic national security play – and sending its stock soaring.

It’s now up 145% since Louis’ presentation.

Expect more of this.

Here’s The New York Times:

Three days after the United States agreed to acquire a stake in the chipmaker Intel, President Trump signaled on Monday that he would pursue similar investments in other major companies, describing his new economic strategy as an attempt to “get as much as I can” …

[Trump] has recently tried to extract favorable concessions when corporate leaders have needed his help.

To take over U.S. Steel, the Japanese-based Nippon Steel agreed to grant the U.S. government a “golden share” in the combined company to influence its direction.

Mr. Trump also extracted a pledge from chipmakers, including Nvidia, to give the government 15 percent of their revenue from selling powerful computer chips to China.

The next target is likely to be defense companies.

Here’s CNBC from Tuesday:

Top officials at the Pentagon are “thinking about” whether the U.S. should acquire equity stakes in leading defense contractors such as Lockheed Martin, Commerce Secretary Howard Lutnick said Tuesday.

Lutnick went on to say that “there’s a monstrous discussion about defense.”

Louis believes these stakes in private companies are just one part of a far bigger initiative, supportive of what Trump promised would be a “boom like the world has not seen.”

And if Louis is right, September 30 is a key date in this boom.

You see, multiple factors are converging, including:

• Trump’s interest in his legacy
• The 2026 mid-terms
• Tariff revenues
• Onshoring/supply chain efforts
• Global investment pledges inside the U.S.

Louis believes they’re all supporting a “Trump boom” that could pull $7 trillion in cash currently in money market accounts off the sidelines and back into the stock market.

I want to cover more ground in today’s Digest, but you can read the full story directly from Louis right here. He’ll tell you what this means for the stock market – and highlight five A-rated stocks that he’s confident have 10X-return potential as these trillions rotate out of savings accounts, into stocks.

In April, as “Liberation Day” tariffs roiled the markets, fellow Digest writer Luis Hernandez and I profiled one of the latest picks from our macro investing expert Eric Fry – Canada Goose Holdings Inc. (GOOS).

It’s a global performance luxury and lifestyle brand that Eric believed had insulation from tariff wars. It was also trading at a P/E ratio of 15.2 – miles beneath the S&P’s P/E of 26.7 at the time.

If you decided to add GOOS to your portfolio based on those Digests, congratulations!

Yesterday, GOOS jumped about 15% thanks to rumors of “take-private” offers.

Here’s Eric with the details:

According to the rumors, the private equity firm, Bain Capital, which owns about 60% of GOOS, has been shopping its stake to other private equity firms.

Reportedly, Bain has received bids from Boyu Capital and Advent International that would value GOOS around $14.50 a share.

But the rumors don’t end there.

Potentially, competing bids from Chinese sportwear companies might be forthcoming. Those bids, if they materialize, could place an even higher value on GOOS shares. 

Eric is playing this news two ways…

In his trading service Leverage, he recommended subscribers sell their remaining half-position in their GOOS call option for about 350%. That produced a total trade gain of about 285%.

But over in Investment Report, where subscribers hold the stock outright, he recommends holding:

[Yesterday’s buyout] rumors could evaporate as quickly as they have appeared, and the “takeover premium” could disappear.

But I believe that risk is low, as Canada Goose could be an attractive acquisition for either a private equity firm or a competing sportswear company.

Therefore, I recommend sitting tight for the moment.

From a long-term perspective, I believe the stock remains undervalued and will continue working its way higher, with or without any buyout offers.

Congrats to Eric’s Investment Report subscribers who are up 89% in their GOOS position in less than five months.

Because of the two different investment vehicles.

If the buyout rumors fizzle, it will have a markedly greater impact on the value of GOOS’s options values rather than the stock price.

Eric’s Leverage subscribers only have about six months left before their call expires, so taking profits on the “GOOS in the hand,” so to speak, is just wise trade management.

Bottom line: Congrats to both Leverage and Investment Report subscribers. It’s just the latest illustration of why Eric is one of the best in the biz.

On that note, as we’re going to press, I’m seeing that Eric is recommending his Leverage subscribers lock in a 1,000% return on their Corning (GLW) calls. We’ll bring you more tomorrow, but for now, a huge “congratulations” on this enormous win.

(Disclaimer: I own GLW.)

It comes from the July Personal Consumption Expenditures (PCE) Price Index, the Fed’s preferred inflation gauge.

Let’s return to Luke. From his Innovation Investor Daily Notes:

Inflation has ticked up each month since April’s “Liberation Day” tariffs, but in small 10–20 bps steps. Headline and core remain under 3%.

Another mild uptick Friday would leave September rate cut odds intact.

Luke goes on to write that “strong Nvidia numbers plus a tame PCE report equal rocket fuel.”

Well, we can put a checkmark by the first variable.

All eyes are on tomorrow morning for the second one.

We’ll report back.

Have a good evening,

Jeff Remsburg

The post Nvidia Crushes Earnings – and Falls? appeared first on InvestorPlace.

Let’s jump right into it…

Nvidia Corp. (NVDA) released its much-anticipated second-quarter earnings after yesterday’s bell.

And while “better” seems to be an expectation for Nvidia in perpetuity, the company delivered better-than-expected results… for the most part.

For the quarter, Nvidiareported that total revenue increased 56% year-over-year to $46.7 billion. Earnings jumped 54.4% year-over-year to $1.05 per share, up from $0.68 per share in the same quarter a year ago. 

However, the company’s outlook failed to impress Wall Street, and the stock slid nearly 3% immediately following its earnings release.

But Wall Street isn’t the only one colored “unimpressed” by the company.

I have been cautious for some time about Nvidia’s sky-high valuation, and where that could eventually lead the company… basically, back down to Earth.

That’s not “better” for anyone. And my wariness around the company hasn’t changed.

So, in today’s Smart Money, I’d like to explain why, despite its earnings beat and dip, I still don’t recommend Nvidia.

Instead, I’ll share a company to replace the chip king in your portfolio.

Let’s dive in…

Beware the Risks

Nvidia has been the undisputed golden child of the AI Revolution for the past two years.

But just because that is the company’s past does not mean it is a guaranteed future, especially since steep AI competition is starting to steal profits.

Nvidia used to keep $0.78 of profit on every $1 of sales. Now it’s down to $0.71… and falling fast.

That’s what happens when other members of the Magnificent Seven – like Amazon.com (AMZN), Alphabet Inc. (GOOG), Microsoft Corp. (MSFT), and Meta Platforms Inc. (META) – start to develop their own chips.

For example, Amazon Web Services (AWS) made its in-house Graviton4 chip generally available in July. This chip is one of many that come from Amazon’s Annapurna Labs in Austin.

Google designs and manufactures its own chips, called Tensor Processing Units (TPUs), for AI, data centers, and smartphones. In fact, Apple uses Google’s TPUs – while also making its own custom processors, known as “Apple Silicon.”

To round it out, Meta started developing and testing its own AI chips, known as Meta Training and Inference Accelerators (MTIA), earlier this year.

All of these chips were created to reduce dependency on Nvidia, which could eventually get cut out of the picture all together.

What’s more, Nvidia has had to write off $5.5 billion worth of chips that it can’t sell to China because of trade restrictions. Specifically, it still cannot sell its most advanced AI processors to China. That’s real money disappearing from its bottom line.

And with global tensions rising, more countries could be removed from Nvidia’s customer list.

So, I recommend avoiding the monumental risks here by steering clear of Nvidia all together.

But now you’re probably wondering, “What company could possibly outdo the AI king in my portfolio?”

Well, here’s what nobody’s talking about… 

The Nvidia Replacement

While the larger focus remains on AI chips, there is one component that makes everything work. Without it, even the most powerful AI chip, including Nvidia’s, is just expensive silicon.

See, when you build an AI data center, thousands upon thousands of servers must be installed.

But here’s the kicker: Those servers are useless unless they can talk to and learn from each other. And the way they communicate is through fiber-optic cables.

New AI hyperscalers need 10X more cables than regular data centers. That’s enough fiber to circle the globe eight times – in a single facility.

To harness that growth, I’ve got a pick that fits squarely in the category of stock I love the most – overlooked and underhyped.

This company quietly built the backbone of the internet, while scores of companies boomed and busted.

And now, as AI explodes, it is a leading supplier of what every data center desperately needs. In fact, this company’s CEO recently said the company’s production of AI fiber is tripling every month.

High demand means customers are inking deals with the company to reserve product ahead of time to edge out competitors. Already, 80% of the AI fiber-optic cable this company makes over the next five years is spoken for.

And it is manufacturing most of it right here in America. This means virtually no tariffs and no trade restrictions for its U.S. customers.

Here’s the best part…

While Nvidia’s customers turn into competitors, nobody is trying to manufacture their own optical-fiber cables.

So, AI hyperscalers are all fighting to get more cables from this company, not replace them.

You can learn how to access my full research and all of this company’s details in my latest free special broadcast, and then you can add it to your portfolio immediately.

Click here to learn more.

Regards,

Eric Fry

The post The Risks Lurking Behind Nvidia’s Big Earnings Beat appeared first on InvestorPlace.

It was a convenient arrangement. Not only was Alcoa first in alphabetical order, it was also an aluminum giant. Its products were used in everything from construction to automobiles to consumer goods. So, its earnings results provided Wall Street with a good temperature check on the U.S. economy and were considered the “official” start of earnings season.

However, Alcoa eventually lost its bellwether status. The company split in two in 2016, and it fell to the big banks to mark the beginning of earnings season.

It was the end of an era.

Today, when it comes to the end of earnings season, NVIDIA Corporation’s (NVDA) earnings were considered the grand finale. But they also serve as the bellwether for the artificial intelligence industry as well as the broader market.

And it’s no surprise why. NVIDIA now makes up 3.6% of global GDP growth – making it larger than the entire stock markets of Great Britain, France and Germany, individually.

Although Wall Street certainly wants to hear what the other six of the Magnificent Seven have to say about AI in their earnings reports, NVIDIA carries the most weight these days. It’s why I like to say that there’s really no Magnificent Seven anymore.

It’s just the Magnificent One: NVIDIA, the engine behind AI.

As such, all eyes were on NVIDIA’s latest quarterly earnings report Wednesday afternoon. So, in today’s ���Ҵ�ý 360, let’s review its results. I’ll explain why the stock dipped despite beating analysts’ top- and bottom-line estimates, and share if it’s still a good buy right now. Plus, I’ll reveal the next big event that should trigger a surge in select stocks.

The Details of NVIDIA’s Earnings Results

For its second quarter in fiscal 2026, the company reported total revenue increased 56% year-over-year to $46.7 billion. And its Blackwell data center revenue rose 17% quarter-over-quarter.

Second-quarter earnings jumped 54.4% year-over-year to $1.05 per share, up from $0.68 per share in the same quarter a year ago. That’s a 4% earnings surprise.

However, data-center growth was below what some analysts were hoping for, although it was still spectacular. NVIDIA’s data center revenue grew 56% year-over-year to $41.1 billion, but analysts expected $41.3 billion.

Additionally, the company’s China-specific H20 chips aren’t shipping yet – but once that’s resolved, it could mean an additional $3 billion to $5 billion in sales per quarter from that line.

In the earnings call, NVIDIA CEO Jensen Huang said that the company is getting “fired back up” to resume selling chips to China, and that it has secured licenses from the Trump administration.

Looking ahead to the third quarter in fiscal year 2026, NVIDIA expects total revenue to be about $54 billion, plus or minus 2%. H20 shipments to China are not included in this outlook, and Huang noted that any sales to China in the quarter would be a “bonus on top.”

That outlook is in line with analysts’ consensus estimate for $53.43 billion. But some analysts outside that consensus were hoping for more than $60 billion.

During the earnings call, Huang also attempted to stifle concerns that AI spending is dwindling. He said the AI opportunity is “immense,” and that NVIDIA sees “$3 trillion to $4 trillion in AI infrastructure spend by the end of the decade.”

After the beat-and-raise quarter, shares of NVIDIA pulled back today. But it wasn’t because of the minor miss in data center revenue.

Why Options Hurt NVIDIA

With a heavy load of short-dated calls – roughly 42% of options are daily – option writers often lean against post-print pops, capping upside even when a company beats and raises forward-looking guidance. So, just the weight of all those positions caps the stock’s upside.

This is exactly what Citadel, Virtu Financial and Jane Street – the primary folks that write all the options contracts – did. They’ve made a lot of money selling calls on NVIDIA, and they have no intention of fulfilling them.

However, this is not unusual and happens a lot during earnings season. So, I view NVIDIA as a screaming buy right now. It’s still the leader in the AI Revolution, its earnings and sales were fantastic and it will continue to dominate the AI space for years to come.

Bottom line: Don’t worry too much about the pullback in the wake of earnings.

Circle This Date on Your Calendar

With NVIDIA’s earnings now behind us, the next date to watch is September 30. That’s the day President Donald Trump could spark $7 trillion of institutional buying. I call it the Trump Shock.

If you’ve been paying attention, you know President Trump has promised us a “boom like no other” – and he’s pulling out all the stops to make it happen. From tariffs to tax cuts to historic Executive Orders, the first six months of his presidency have been a frenzy of unprecedented stimulus.

Investors who position themselves correctly before September 30 could profit handsomely. Specifically, there are five companies that I believe will experience an historic run – all thanks to the $7 trillion Trump Shock.

Click here to watch my urgent briefing to learn how to access these names and get my favorite stock pick – absolutely free.

Sincerely,

Louis Navellier

Editor, ���Ҵ�ý 360

The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

NVIDIA Corporation

The post Why NVIDIA Is a Screaming Buy After Earnings appeared first on InvestorPlace.

The AI poster child just delivered another quarter of record-shattering growth, offered guidance for even more strength ahead, and reminded us all that the AI boom is the biggest capex wave in history. Yet, the stock slid nearly 3% immediately following that update.

If that sounds backwards, that’s because it is. And it’s also why this week’s earnings report should be read not as a red flag, but as a green light for the next leg higher in AI stocks.

Let’s take a closer look.

Nvidia Earnings: The Numbers That Matter Most

First, we’ll separate what Nvidia reported for the second quarter (Q2) from its forward guidance for Q3. They are two different stories – and together, they paint a bullish picture.

In Q2:

• Revenue came in at $46.7 billion, up 56% year-over-year (YoY). 
• Data center revenue – the heart of the AI buildout – hit $41.1 billion, also up 56% YoY.
• On a sequential basis, growth slowed to 5% quarter-over-quarter (QoQ), which gave a few traders something to nitpick.

And for Q3 guidance:

• Management anticipates $54 billion ±2% in revenue, excluding China H20 chip sales.
  • That’s a monster number: ~55% YoY growth, and ~15- to 16% QoQ growth off an already massive base. 
  • If China sales were included, guidance could stretch to $56- to 59 billion — implying 60- to 70% YoY growth, and 20- to 26% sequential growth.

Clearly, Nvidia’s earnings report showed continued strength, and its guidance reflected accelerating strength. 

So, why did NVDA stock initially drop?

Traders wanted fireworks. They got sparklers.

The expectations bar for Nvidia is sky-high. At a $4 trillion-plus market cap, Wall Street magnifies every hiccup. A slightly slower sequential growth rate in Q2, plus the exclusion of China H20 chips from Q3 guidance, spooked short-term money.

But the fundamentals scream one thing: the AI infrastructure build-out is still going strong.

Jensen Huang’s $4 Trillion AI Bombshell

If you needed more proof, CEO Jensen Huang gave it to you on the company’s conference call. 

Therein, he said he expects the world’s largest companies to spend $3- to 4 trillion on AI infrastructure in the next five years and positioned Nvidia to capture as much as 70% of that spend.

Now, let’s pause for a moment. That doesn’t imply just another year or so of strong growth. We are talking about multi-trillion-dollar capital commitments – possibly bigger than the cloud and smartphone build-outs combined. (While this isn’t a simple calculation, Kearney concludes that “The total investment in mobile Internet connectivity infrastructure, averaged over the past five years, is $244 billion annually, including spend on end-user devices.”)

And, of course, those trillions won’t just stop at Nvidia. They’ll filter into the entire AI supply chain: servers, networking, cooling, rare-earth magnets, batteries, robotics, software…

That’s why AI stocks are primed to rally.

AI Capital Cascades From the Top

Coming into this report, Wall Street worried Nvidia’s numbers would show that hyperscale AI spending is slowing.

This earnings report killed that fear.

Nvidia anticipates $54- to $59 billion next quarter, confirming 55- to 70% YoY growth at scale.

Hyperscalers are still spending aggressively. Sovereign AI budgets are ramping. Enterprises are just beginning their adoption cycle.

If this titan’s growth is intact, the AI boom is, too.

That’s bullish for:

• Semiconductors and Foundries – AMD (AMD), Broadcom (AVGO), Marvell (MRVL), Taiwan Semiconductor (TSM): Every new GPU rack requires networking chips, accelerators, and advanced manufacturing at scale. Nvidia’s forecast implies years of record wafer demand and chip innovation.
• Servers, Storage, and Networking Gear – Super Micro (SMCI), Dell (DELL), Arista Networks (ANET), Cisco (CSCO): Trillions in AI investment translates directly into a wave of orders for high-density servers, low-latency switches, and enterprise networking solutions.
• Power and Cooling Infrastructure – Vertiv (VRT), Eaton (ETN), Trane (TT): The AI datacenter buildout is power-hungry and thermally intensive. Sustained hyperscaler capex means record demand for cooling, electrical infrastructure, and energy-efficient retrofits.
• AI Software Platforms – Palantir (PLTR), Snowflake (SNOW), C3.ai (AI): A massive hardware expansion unlocks exponential growth in AI workloads, analytics, and enterprise AI adoption, driving software and data-platform spend.
• Physical AI and Robotics Supply Chain – Tesla‘s (TSLA) Optimus, Agility Robotics, MP Materials (MP), USA Rare Earth (USAR): the push toward agentic AI and robotics accelerates demand for sensors, actuators, and critical minerals powering this next industrial wave.

When Nvidia says the AI boom is alive and well, it’s not just bullish for Nvidia. It validates the entire supply chain: semis, servers, infrastructure, software, and the physical AI frontier.

From Fear to FOMO: The Sentiment Reset to Precede an AI Rally

Heading into this report, fear was building: what if the AI trade has peaked? What if capex slows?

Instead, we learned the opposite is true.

That’s the kind of sentiment reset that flips cautious positioning into aggressive buying. Hedge funds that minimized their AI exposure will unwind. Retail investors once waiting for a dip will chase. Portfolio managers underweight AI will scramble to re-balance.

It’s a classic setup: clear the hurdle, reset sentiment… ignite the rally.

If you want exposure to the largest capex cycle in history, we think this is it.

And as we’ve mentioned, the story doesn’t stop with data centers or chips. The same forces driving hyperscale AI adoption are now spilling into the physical world – ushering in the next frontier of this cycle: robotics and physical AI.

We’ve arrived at the point where factory automation, warehouse bots, and humanoid systems like Tesla’s Optimus are stepping into commercial use.

And just as Nvidia’s trillion-dollar wave spills into servers, cooling, and chips, this robotics surge will cascade into the suppliers making the sensors, actuators, rare-earth materials, and embedded systems that power the machines themselves.

Don’t just watch the robots take center stage – position yourself in the companies building the parts that make them move.

The post Jensen Huang’s $4 Trillion Vision: Why Nvidia Earnings Signal the Next AI Rally appeared first on InvestorPlace.

In 1966, iconic Californian rock band The Beach Boys released “Good Vibrations” – and the song’s title turned into a popular phrase that’s been transformed in the decades since.

The ’70s hippie movement shortened it to “good vibes.” And today, Millennials and Gen Z-ers have made “vibe” their universal descriptor for the energy sensed in a given situation, person, or trend.

But vibes aren’t always good. And right now, AI is going through a so-called “vibe shift.”

For years, the AI boom burned hot with releases of large language models (LLMs), virtual assistants, robotic devices, and other AI technologies that continue to transform our daily lives.

But every trend has its ebbs and flows, and the AI vibe could be showing signs of cooling.

In the past week alone, Meta Platform Inc.’s (META) AI division, Superintelligence Labs, has halted hiring after its costly hiring spree this summer. Researchers at the MIT report that 95% of gen-AI programs fail to make revenue. And OpenAI CEO Sam Altman said he thinks we’re in an “AI bubble.”

It is still important to note that AI isn’t going anywhere. Even if the mania of the last few years somewhat slows, tech companies will continue to make, train, and deploy the technology.

Of course, here at Smart Money I’ve discussed the importance of investing through the lens of AI.

So today, I want to share how that lens includes a safeguard against any potential AI “vibe shift”… and includes a company that is curating its own popular “vibe” amongst young consumers.

Let’s dive in…

Finding the Right “Vibe”

Many of you may be familiar with what I call AI Survivor companies, or “future-proof” enterprises that produce goods and services that AI cannot replicate or replace.

These businesses operate in major industries like agriculture, energy in its various forms, mining, hospitality and travel, and international markets.

As such, these companies are primed to withstand the AI lifecycle, and any shift that might occur.  

Some of these companies also possess a future-proof quality because they provide “affordable luxuries” like farm-to-table foodstuffs, artisanal home goods, premium coffees, or high-end spirits.

This last category is particularly interesting.

You see, the more that AI dehumanizes our daily lives, the more we humans will crave innately human experiences… like sipping (and photographing) a heart-warming cocktail.

These are the “good vibes” that Millennials and Gen Z-ers curate, and crave, from their social gatherings. And certain high-end spirit companies are leading the charge.

In fact, I’ve got my eye on one Italian-based spirit company that recently acquired a popular apéritif, one of the key ingredients in what’s become the most popular cocktail in the United States

The company’s financial results reflect this apéritif’s growing brand strength. Retail sales in the Americas grew 10% in the second quarter, despite a broad slowdown in the overall spirits market. It produced even stronger results in the UK and France, where retail sales jumped 13% and 17%, respectively.

Despite these impressive trends, the high-end spirit company is leaving nothing to chance. It is “leaning in” on marketing efforts across both traditional and non-traditional channels, like targeting its younger, trend-sensitive consumers by sponsoring dozens of music festivals across and Europe and in the U.S.

This omnichannel engagement strategy is especially effective for attractingMillennial and Gen Z drinkers, who value personalization, transparency, and aesthetic appeal.

What’s more, the company’s portfolio supports a premiumization strategy that aligns with the “drink less, but better” trend that is shaping consumer behavior. Young consumers in particular are moving away from “drinking a lot” to “drinking well” – a trend it is leading.

In effect, this company isn’t just selling spirits; it’s curating cultural participation.

And it has almost nothing to do with AI. It is a pure AI Survivor.

But this seeming deficiency is actually a strength right now.

I recently recommended this “good vibes” spirit company to members of my elite-trading service, The Speculator.

You can learn how to access all of the details of this company – and how to join me at The Speculator – by clicking here.

Regards,

Eric Fry

The post AI’s “Vibe” Is Shifting – and Making This Company a Winner appeared first on InvestorPlace.

How did Nvidia’s earnings come in?

By the time you’re reading this, Nvidia (NVDA) will likely have released Q2 results, which dropped after the closing bell.

We’ll cover the details in tomorrow’s Digest with commentary from our experts – principally Louis Navellier, who still holds NVDA in his Growth Investor portfolio, where his subscribers are up 4,176.29% as I write.

But suffice it to say: this isn’t just another earnings report. Nvidia has become the market’s proxy for AI and next-gen computing – a company whose numbers set the tone for the entire sector.

Whatever the outcome, the implications will ripple well beyond one stock…for better or worse.

We’ll report back.

On Monday, President Trump lobbed his latest threat at China…

They have to give us magnets.

If they don’t give us magnets, then we have to charge them 200% tariffs or something.

It might sound like political theater, but it underscores a critical economic/technological reality…

These magnets are the heart of our AI-powered future – without them, we have no next-gen technologies.

For context, rare-earth magnets drive electric motors in autonomous vehicles, actuators in service robots, and precision systems in drones and industrial automation, among other uses.

China has a stranglehold on them. The country mines approximately 70% of the world’s rare-earth ores and controls nearly all the processing, accounting for about 90% of high-performance rare-earth magnets.

Earlier this year, China tightened export controls, causing supply disruptions and sending Washington scrambling for alternatives.

A temporary easing followed in August after progress on trade negotiations. Chinese shipments rebounded and the U.S. stepped up domestic production efforts. But China has kept strict licensing and tracking rules in place, maintaining market leverage.

That’s why Trump’s latest warning of 200% tariffs is serious. It’s a reminder that, despite some relief in recent months, rare-earth magnets remain a strategic choke point in the global race for advanced technologies, from EVs to defense to robotics.

I was recently asked – with the potential for so much to go wrong with humanoids, why are we barreling toward their development?

Because we must.

Here are three key reasons:

I won’t flesh out each in today’s Digest, but let’s examine demographics…

The federal government’s financial system runs as a Ponzi scheme where the young pay for older retirees.

This isn’t an issue when the population is growing, there’s significant household formation, and the up-and-coming generations outnumber the older generations. But that’s no longer our reality.

Here’s the CDC’s National Vital Statistics Report from March:

Since 1990, the U.S. total fertility rate (TFR) declined from about the replacement level of 2.1 births per woman—the fertility level needed for a population to replace itself from one generation to the next—to 1.62 births per woman in 2023.

The system breaks…

• A smaller working class are forced to pay higher taxes to cover snowballing government spending obligations – but it’s still not enough
• The revenue shortfall requires a tidal wave of new debt issuance to pay for all the government’s spending obligations
• Higher bond yields from this wave of debt weigh on equity returns
• The new debt leads to money printing, inflation, and the accelerated weakening of the U.S. dollar
• Social Security’s insolvency accelerates

Basically, it’s a dystopian succession of tipping dominos stemming from “too few young workers contributing to the system” while “too many elderly take out of the system.”

Physical AI doesn’t age, doesn’t retire, doesn’t draw Social Security, doesn’t require healthcare, and doesn’t require salaries…

It simply produces economic output.

Now, this prompts a logical question…

Won’t fewer human workers also mean even fewer people contributing to a still-growing population of takers? Won’t that worsen the situation?

True, fewer workers mean fewer payroll contributions into programs like Social Security. But this isn’t only about Social Security inflows – it’s about whether the overall economy can generate enough goods and services – and by extension – tax revenue to cover all our entitlement promises.

Robots – by replacing lost labor and sustaining productivity growth – expand the economic pie even as the workforce shrinks. That larger output base gives the government more taxable activity to draw from, which helps keep Social Security and Medicare solvent despite fewer human contributors.

So, no, robots won’t directly pay Social Security taxes, but their productivity will sustain growth and keep the system from unraveling.

Bottom line: These technologies are not just “nice to have” innovations – they’re the only answer to a shrinking workforce and ballooning fiscal obligations.

On that “shrinking workforce” note, the Trump administration’s restrictive immigration policies could result in 2025 being the first year of negative net migration in at least 50 years.

Historically, some of these immigrants have filled crucial roles in our economy – everything from agriculture and construction to healthcare and service industries. If net migration truly turns negative, it will accelerate the twin pressures of an aging population and a shrinking labor pool.

This is why politicians, policymakers, CEOs, and forward-thinking investors are arriving at the same conclusion…

Just as electricity and the internet reshaped entire eras of economic growth, robotics will be the backbone of the next expansion cycle, ensuring output rises even as the working-age population shrinks.

For investors, that makes robotics not just an innovation play, but one of the most straightforward long-term bets on America’s economic survival.

I want to cover more ground in today’s Digest, so I won’t get into the specific investment implications as I’ve done in prior Digests. But earlier this month, our experts Louis Navellier, Eric Fry, and Luke Lango released a collaborative research video on how to invest in Physical AI.

I was given permission to link to it again given the relevance to today’s Digest – though we won’t keep the video up indefinitely. If you’d like to dig into this topic in more detail, please check it out here as soon as you’re able.

Either way, the age of robotics/Physical AI is barreling toward us. Make sure you’re ready.

It depends on who you ask.

Legendary investor Louis Navellier dove into this in yesterday’s Growth Investor Flash Alert podcast:

The Fed has already announced – Jerome Powell announced last week – that they’re a full 1% (100 basis points) above the neutral rate.

So, President Trump would like to have at least four rate cuts.

Treasury Secretary Scott Bessent thinks they should have six.

Traders are more restrained, though still looking for a handful of cuts.

As I write Wednesday, CME Group’s FedWatch tool shows:

• 89.3% probability of a 25-basis-point cut at the September meeting
• 49.6% odds on two quarter-point cuts by December
• 37.3% odds on three rate cuts by December (up from 20.1% a month ago)

The farther out we look, the hazier it gets.

As we’ve pointed out in the Digest, it won’t just be about how much rates move, but how the market interprets the Fed’s motivation…

Are rate cuts a fear-based lifeline for a flatlining economy? Or a victory lap celebrating wins on growth and inflation?

We’ll be tracking this.

Circling back to Louis, here’s his roadmap for the interplay between the Fed, seasonality, and the market as we look toward 2026:

We tend to rally going into holiday weekends, so don’t be surprised by that.

After Labor Day weekend, we might have some profit-taking because volume will be light.

The first half of September is seasonally weak. Then on Wednesday, September 17, we should have the Fed rate cut, a new dot plot and hopefully, they’ll get the market excited.

The second half of September is better than the first half. Then we get into October – same thing – second half is better than the first half.

Then we have a new Russell realignment. That’ll help small-cap stocks, just like it did in June when the last realignment happened.

Put it all together and Louis is bullish as we look to finish up the year. He believes dips are buying opportunities as long as you can stomach some volatility.

We’ll give him today’s final word:

I know some of you don’t like the rollercoaster that the market’s on, but I do think things are going to get a lot better here pretty darn quick.

I’m expecting a nice year-end rally.

Have a good evening,

Jeff Remsburg

The post A “Must Own” for Your Portfolio appeared first on InvestorPlace.

And, while it may not feel like it, pinpointing that ideal time isn’t a game of chance.

See; every technology and every stock follows the same repeatable, predictable pattern, which occurs in four stages. 

In some of those stages, stocks rise. In others, they fall. The key to making money in any stock, in any market, at any time, is to buy and sell only at the right stages.

It’s a simple yet well-guarded secret to generating wealth on Wall Street. And it seems that very few people know about it.

Most investors stumble because they never learn to see where a stock sits in its life cycle. But once you grasp the four phases, you can spot when fortunes are made – and when they’re lost. 

Perhaps nowhere is this clearer than in artificial intelligence. AI stocks have already blown through their introduction phase at record speed, and the sector is now in the explosive stage where the biggest profits are minted.

Take a look.

The 4 Stages of Every Stock and Where AI Stocks Are Now

Phase 1: Introduction

For most of human history, transformational innovations have proliferated very gradually. Take the automobile: first patented by Karl Benz – co-founder of Mercedes-Benz – in 1886. 

Benz is largely considered the father of the automobile. But it wasn’t until 1908, when Henry Ford introduced the Model T, that the automobile entered mass production. Over the next few years, throughout the 1910s, improvements in the production process made these cars more affordable and available, priming them for faster adoption.

In other words, the automobile’s ‘introduction’ phase lasted for about 30 years. 

Let’s compare that to the era of artificial intelligence.

We can tie AI’s ‘introduction’ back to ChatGPT’s grand debut in late 2022. In less than 12 months – by late 2023 – it surpassed 100 million weekly users. That means it rocketed from nascent to mainstream in less than one year…

AI’s introduction lasted just a few months – making it the fastest-growing technology in human history. 

It’s now squarely in Phase 2: Growth.

Phase 2: Growth

Now, Phase 2 is the splashiest and most exciting of all. It’s an era of swift adoption. 

For a moment, let’s return to our review of the automobile’s rise. 

Following Ford’s production improvements in the 1910s, the 1920s saw the ‘true automobile revolution’ as U.S. ownership rapidly increased. In 1920, 20% of Americans had automobiles. But by 1929, 60% of U.S. families owned a car, with more vehicles per household than ever before. That’s a 200% increase within the decade.

This shows just how explosive this phase of growth can be. For this reason, it’s also when the most fast-and-furious stock returns are made.

As we mentioned, AI entered this phase within a mere 12 months, meaning it’s now been in Phase 2 since early 2024. In that time, the sector has seen some meteoric stock market gains…

Those are some monster triple-, even quadruple-digit returns – the kind that could produce generational wealth if you play your cards right.

However… considering the fact that AI is the fastest growing technology in human history – achieving mass adoption in record time – it’s inevitable that this phase of growth won’t last long, either…

Phase 3: Maturity

Indeed, no party lasts forever. Eventually, a technology reaches mass adoption, and the excitement begins to fizzle. For the automobile, this phase arguably began in the 1950s. 

By 1955, over 7 million U.S. cars were sold annually, and 80% of households owned a car. The market consolidated around the “Big Three” – General Motors (GM), Ford (F), and Chrysler – which controlled ~90% of the U.S. market. And by this time, the post-WWII boom had ended, with car sales becoming cyclical.

This phase of maturity is when stocks typically trade in a sideways-to-lower pattern. This reflects the push and pull of investors who are sitting on big profits and selling to new investors who are late to the party.

While the Phase-2 buying frenzy marked a generally steady rise in prices, the ‘Maturity’ period is characterized by a trading channel.

For AI, this could mean a handful of giants dominate, while many others stagnate.

Then comes a correction.

Phase 4: Decline 

This is the least-enjoyable part of the life cycle – sort of like the hangover after a party.

On Wall Street, investors tend to go wild for elite growth stocks and bid them up to unsustainable levels. 

A Phase 4 decline “washes away” those excesses and sets realistic expectations for stocks. 

Such corrections can come in different shapes and sizes. Stocks can fall 20%, 30%, 40%, even 60% from their highs. And these declines can last months or even years.

So, if you’re interested in riding top growth stocks for short- to medium-term profits while avoiding what can be substantial, painful drawdowns, the lesson is clear…

Restrict your buying only to stocks entering Phase 2!

That’s when fortunes are made.

The Final Word on Perfectly Timing a Profitable AI Trade

Now, as we said, Phase 2 doesn’t last forever. 

Eventually, all technologies – and all stocks – enter maturity; and suddenly, all the mammoth growth potential is gone.

The automobile’s growth phase lasted 30-plus years. The television reached mass adoption in 11 years. The internet did it in five. For smartphones, it was three… 

Clearly, the rate of technological adoption is increasing exponentially over time – meaning there’s no telling how long AI will remain in this highly profitable growth phase.

Perhaps another few months at most?

That’s why timing this opportunity is everything.

And it’s exactly why I built Nexus – a system engineered to detect when individual stocks may be transitioning from ‘Introduction’ to ‘Growth.’ That precise moment is the sweet spot for tapping into potentially huge returns.

This system uses several different behavioral indicators to detect when human psychology may be shifting around a company. It analyzes volume spikes, buying pressure, when optimism replaces skepticism – all signals that the crowd may be about to rush in, triggering a major stock breakout.

Most investors get it wrong. They buy too early or too late. Nexus is built to zero in on the only time that matters – the breakout into Phase 2.

Right now, AI is flipping companies from obscurity to hypergrowth overnight. But the data suggests this era won’t last much longer.

That’s why I’m challenging readers to seize this rare profit opportunity while they still can. 

With Nexus, you don’t have to guess. You just have to act.

Click here to learn more now.

The post AI’s Profit Window Is Wide Open – Here’s How to Time It appeared first on InvestorPlace.

All eyes turn to Nvidia tomorrow when the market’s bellwether for the AI boom reports earnings after the closing bell.

Expectations are sky-high – analysts expect another blockbuster quarter with revenue more than tripling from last year, powered by relentless demand for AI chips.

Investors will be thrilled if Nvidia not only beats those lofty numbers but also guides higher. The market wants the reassurance that hyperscalers and enterprise customers are still racing to buy GPUs.

On the flip side, any hint of slowing demand, margin compression, or supply bottlenecks could spark disappointment in a stock that has already priced in perfection.

So, tomorrow isn’t just about Q2 performance – it’s about whether Nvidia can keep proving that the AI wave has much further to run.

Our technology expert Luke Lango believes the numbers will come in strong, validating the AI thesis and jumpstarting the next leg higher in the market.

From his Innovation Investor Daily Notes:

If history is any guide, Nvidia’s results will blow minds, re-anchor Wall Street on the AI growth story, and spark a rebound in tech.

Powell’s pivot last Friday stacked the kindling; blowout earnings from Nvidia could spark the flames.

That sets the stage for a September cut, a strong third-quarter earnings season, and a year-end holiday bump…

Yes, every boom turns to bust. But not today. Right now, the green lights are flashing.

Now, while the entire market popped last Friday, one corner of the market could be flashing the greenest…

Stocks surged in the wake of Federal Reserve Chairman Jerome Powell’s dovish speech in Jackson Hole last Friday. But small caps led the way – the S&P Small-Cap 600 Index jumped 3.8%.

This outsized move wasn’t random. Smaller companies tend to carry heavier debt loads and rely more on borrowing to fund growth. Falling interest rates hit their balance sheets faster and harder than they do for cash-rich mega caps.

Cheaper credit also can unlock fresh demand for capital-intensive sectors like regional banks, industrials, and real estate – areas that dominate the small-cap universe.

Plus, small caps have lagged for much of this cycle, so the prospect of rate relief suddenly makes them look like the place to be.

Yesterday, we got data on this from Lucas Downey, the quant specialist and editor of Alpha Signals at our corporate partner TradeSmith. He’s also a key contributor to the TradeSmith Daily.

Lucas crunched the numbers and found that the S&P Small-Cap 600 Index has jumped 3.8% or more in a single session 51 times since March 2009. And the subsequent performance has been resoundingly bullish.

I’ll let you browse the data below, but I’ll point out one detail…

Twenty-four months after this 3.8% trigger, the index has been higher 100% of the time with an average return of 61.80%.

Here’s Lucas’s data:

Yesterday, ���Ҵ�ýWatch profiled this budding small-cap rally. Its article quoted the head of U.S. equity strategy at RBC Capital ���Ҵ�ýs, who said:

It wouldn’t surprise us if Friday’s move turns out to be a brief short-covering event that fizzles out.

Is there a way to avoid buying into this type of fake breakout?

While no one has a crystal ball, one of the best proxies we have is volume, which is a critical variable in the way that Luke Lango trades in Breakout Trader.

As we profiled in yesterday’s Digest, Luke’s market approach in this trading service centers on an analytical framework called “stage analysis” that categorizes a stock’s price movement into four stages:

• Introduction (sideways at a bottom)
• Growth (a bullish breakout)
• Maturity (sideways at a top)
• Decline (a bearish drawdown)

This puts the focus on what matters the most to your wealth – price action.

To help sniff out whether Friday’s small-cap breakout was a “brief short-covering event that fizzles out,” the first step is to analyze the scope of the buying pressure.

As Luke writes, a genuine breakout is going to feature outsized volume. If it’s not there, watch out:

Heavy volume is a critical part of a genuine breakout – and also a sustained, healthy Stage-2 climb.

It indicates strong investor interest and can confirm the authenticity of a price move higher. 

Meanwhile, the absence of heavy volume suggests a flimsy move that lacks conviction. Be very careful about making trading decisions based on light volume.

Volume in the Russell 2000 (a broader proxy for small caps) jumped last Friday. Total trading volume came in at roughly 5.05 billion shares – about 25% higher than Thursday’s 4.01 billion shares.

While that’s a good sign, follow-through is critical. So, this week, we’re looking for outsized buying volume on “up” days and muted volume on drawdowns.

Overall, with Lucas’s bullish data on small-cap performance, we’ll be using volume and additional entry triggers from Luke’s stage analysis system to help time potential trade entry.

While we’re waiting for the overall greenlight on small-caps, Luke is already pulling the trigger on various AI positions in Breakout Trader.

As we noted in yesterday’s Digest, Luke is confident that he can help traders turn a $5,000 starting portfolio into $30,000 over the next six months. This reflects his confidence in the stage analysis framework and the bullish conditions for tech/AI as we push into 2026.

For more details, click here to check out Luke’s special free broadcast.

A few days ago, the magazine ran a bullish piece on building-products supplier QXO, with a headline that included: “Why It’s Time to Buy.”

They’re a little late.

Back in June, Jonathan and his Advanced Notice subscribers made 183.78% on their QXO call option in just two weeks.

But that could just be just the warm-up trade…

Jonathan remains very bullish on QXO with more live positions open right now. So, let’s profile the set-up that this trading veteran recently called “one of our top trades for 2025.”

Brad Jacobs has made a career out of finding sleepy, fragmented industries and turning them into billion-dollar juggernauts.

He did it with United Rentals, now the world’s largest equipment rental firm. He did it again with XPO Logistics, which he grew from a small trucking outfit into a global logistics leader. His newest project, QXO, is targeting the $800 billion building products distribution business – a huge industry practically begging for disruption.

QXO’s first move was an $11 billion acquisition of Beacon Roofing Supply. That single deal vaulted the company into the spotlight and confirmed Jacobs is running the same aggressive roll-up playbook he’s perfected over four decades.

To fund this, he’s also brought in heavyweight investors. Jared Kushner’s Affinity Partners, Sequoia, Orbis, and even the Walton family have all written big checks.

While the financial media are just now starting to catch on, this opportunity was on Jonathan’s radar back in May. He recognized Jacobs’ track record, the size of the market, and the fresh firepower from institutional backers. All of it pointed toward building momentum that Wall Street hadn’t fully priced in.

So, in June, Jonathan and his Advanced Notice subscribers pulled the trigger on bullish call options – and just two weeks later, walked away with almost 185% gains.

The bigger story is still unfolding, so you’re not too late.

With an $800 billion market to consolidate, a war chest of capital, and a proven blueprint, QXO could be in the early innings of becoming the next United Rentals or XPO Logistics.

That’s why Jonathan remains bullish – and why this trade was more than just a quick winner. It’s possible that we’re getting an early glimpse at one of the market’s great compounders of the next decade.

But this is also opening the door for more institutional buying in other small companies – which means additional trades with triple-digit potential.

From Jonathan:

The real story wasn’t about one deal. It was about Jacobs’ massive consolidation play.

With Affinity’s backing and a proven acquisition strategy, they’re just getting started as they roll up the entire building industry.

And once again, institutional traders are lining up for round two. But now it’s not just QXO in their crosshairs…

A whole slew of potential acquisition targets are on the table for early investors. And even the major players disrupted by QXO’s consolidation spree could represent golden opportunities from here.

For a deeper dive, here’s Jonathan’s recent episode of Masters in Trading Live where he breaks down why QXO is among his favorite trades of the year. I

And here’s yesterday’s Masters in Trading Live where he highlights the Barron’s article.

Bottom line: This has the potential to be not only a bullish trade, but a powerful long-term anchor position. If you’re looking to put money to work, give this one a look.

From Jonathan:

If you’re serious about finding story-driven trades before Wall Street catches on, this QXO deep dive is essential.

And if you’d like to learn how to spot these trade opportunities yourself, Jonathan is happy to show you:

I want to give you the tools to spot massive winners like these before the markets even have a clue.

Just click here to learn all about the key strategy we use by signing up for The Masters in Trading Options Challenge.

We’ll keep you updated on all these stories here in the Digest.

Have a good evening,

Jeff Remsburg

The post This Corner of the ���Ҵ�ý Is Surging (Not AI) appeared first on InvestorPlace.

It’s one of the most depressing charts you’ll ever come across in finance.

It shows the stock price of a once-great American company. A blue-chip icon. A testament to American “greatness.”

The only problem? Its stock has gone nowhere over the past 10 years.

I’m talking about Intel Corporation (INTC).

What makes this even harder to stomach is that all of Intel’s missteps happened during the very same period when the AI Boom took off.

Competitors like NVIDIA Corporation (NVDA) came along and revolutionized the semiconductor industry. They became the clear-cut leader of the AI Revolution. Meanwhile, Intel just couldn’t seem to figure it out.

There’s so much unfavorable news about Intel that it’s hard to even know where to start.

Let’s just consider the past year.

In August 2024, Intel announced plans to slash its headcount by more than 15% as part of a $10 billion cost-savings plan for 2025 – a move that could eliminate nearly 19,000 jobs. Around the same time, Intel suspended its dividend, cutting off income-focused investors from even a modest payout. Then in December, CEO Pat Gelsinger abruptly retired after failing to turn things around, leaving the company without a clear succession plan.

The financials tell the same story. Last year, Intel lost $0.13 per share on $53.1 billion in revenue. Back in 2021, it earned $4.86 per share on $79 billion in revenue. That’s how far the mighty have fallen.

Now, things may be starting to look up – analysts expect a return to profitability this year. But even then, Intel is only projected to earn $0.12 per share on $52 billion in revenue. By comparison, NVIDIA is expected to grow earnings 46% on $203 billion in revenue – a 56% revenue surge. And over the past five years alone, the stock is up nearly 1,300%.

Don’t get the wrong impression. I’m not trying to denigrate Intel or its shareholders. They’ve suffered enough already.

And yet, despite all this, the U.S. government just made a bold move: it took a 10% stake in Intel.

That raises an important question…

Why in the world would Washington want to invest in a company with so many struggles?

That’s exactly what we’ll discuss in today’s ���Ҵ�ý 360. Because this isn’t the first move the U.S. government has made like this – nor will it be the last. So, we’ll go over what happened, what the Trump administration might do next – and how investors can profit.

Why Washington Chose Intel

So why would the U.S. government step in and take a 10% stake in Intel – a company that has lost ground and stumbled in the chip race?

The short answer: Because despite all its woes, Intel is still the only American company capable of making advanced chips at scale on U.S. soil.

Last week, Commerce Secretary Howard Lutnick confirmed the government invested $8.9 billion into Intel common stock. That gave the U.S. a 10% stake in the company at a discount to the market price – now valued at roughly $11 billion. The funds came from CHIPS Act grants and secure-chip awards that had already been approved but not yet paid out. The government also secured a warrant to buy another 5% stake if Intel ever loses majority control of its foundry business.

Make no mistake, this is about more than shoring up a troubled stock. This is about national security.

Intel has spent billions building new factories in Ohio – what it calls the “Silicon Heartland” – in a bid to regain ground against Taiwan Semiconductor Manufacturing (TSMC). But the company has repeatedly run into delays and cost overruns. Just last month, new CEO Lip-Bu Tan told employees there would be “no more blank checks.” Intel’s crown jewel factory in Ohio isn’t scheduled to start production until 2030.

Meanwhile, TSMC continues to dominate global chip manufacturing, producing the most advanced semiconductors for Apple Inc. (AAPL), NVIDIA, Advanced Micro Devices Inc. (AMD), Qualcomm Inc. (QCOM) – and even Intel itself.

That’s not just disappointing – it’s a serious strategic concern. The West remains heavily reliant on Taiwan, which produces more than 60% of the world’s semiconductors and nearly 90% of advanced chips. If China ever made good on its threats to invade Taiwan, the risks to our supply chain would be catastrophic. (TSMC, for its part, understands this – which is why it’s building new chip foundries overseas.)

By taking a stake in Intel, the U.S. government is signaling it won’t allow the country to depend on one small island within striking distance of our biggest adversary for the chips that power everything from iPhones to AI data centers to missile guidance systems.

President Trump called it “a great deal for America and a great deal for Intel.”

White House economic advisor Kevin Hassett went even further, saying this is likely the first of many such deals.

This is industrial policy on steroids, folks – and Intel is just the beginning. In fact, it’s not even the first move…

The First Move: MP Materials

You see, this isn’t the first time Washington has put real money to work in a strategic company.

Back in July, the government made a move into MP Materials Corp (MP), the only U.S. company mining and processing rare earth minerals at scale.

These metals are absolutely critical to everything from missile guidance systems to EV motors to the permanent magnets used in advanced semiconductors.

In fact, at a special investment briefing before this news, I told folks about MP as a “hidden AI trade”. The next day, this news broke, and the stock promptly doubled in less than a week. That’s the kind of impact direct government support can have.

Why MP Materials? For the same reason Washington just bought a piece of Intel: national security.

Rare earths are a choke point where China dominates. And just like with semiconductors, the U.S. government has no intention of letting a strategic adversary control the materials needed for our defense systems and next-generation technology.

The MP Materials stake was a clear warning shot. It showed the Trump administration was willing to move beyond grants and subsidies. They were willing to take an actual equity stake in a company if that’s what it takes to protect America’s supply chains.

Intel is simply the next domino to fall. And it won’t be the last…

The Next Domino: Defense Contractors

Now, Intel wasn’t the only name in the headlines this week. Howard Lutnick also said on CNBC that the Pentagon is also weighing equity stakes in defense contractors like Lockheed Martin Corporation (LMT).

Think about what that means. Washington isn’t just handing out contracts anymore – it’s talking about owning a piece of the very companies that build our fighter jets, missile systems and next-generation defense technology.

Why? Because national security depends on it.

Lockheed and its peers are the backbone of America’s military supply chain. But costs are rising, projects are getting more complex and the geopolitical backdrop is more dangerous than it has been in decades. The Trump administration wants to make sure these firms have the resources to scale up quickly – and it doesn’t want to leave that mission in the hands of Wall Street alone.

In other words, Washington is moving from regulator to shareholder. That’s a sea change in U.S. industrial policy. First MP Materials. Then Intel. Next, the defense sector. And, as I noted above, Kevin Hassett has said there will be “many more deals” like this.

For investors, the message is clear: The government isn’t just influencing markets from the sidelines anymore. It’s stepping directly onto the field.

What This Means for Investors

Taken together, these moves form a clear pattern.

First it was MP Materials, where the government backed the only U.S. rare earth producer. Then it was Intel, where Washington took a 10% equity stake to shore up domestic chipmaking. Now the Pentagon is signaling it may even buy into defense contractors like Lockheed Martin.

This isn’t random. It’s part of a broader strategy.

And I’ve been telling my followers about it for months – well before these moves were even made.

Through Executive Order #14196, President Trump directed the creation of America’s first sovereign wealth fund — what I call the MAGA Fund.

Its purpose is simple: Unlock hidden “reserve accounts” and funnel that capital into a select group of U.S. companies critical to our national security and long-term prosperity.

Make no mistake, we’re talking about trillions of dollars.

The companies tied to this agenda will have something no other firms can claim – the full weight of the U.S. government behind them.

I’ve identified a handful of under-the-radar companies I believe are first in line to benefit. And because they’re smaller names that most investors haven’t heard about, I believe their stocks could skyrocket as the money starts flowing – just like it did with MP Materials.

Click here now to learn the details and position yourself before the next round of MAGA Fund investments hits the market.

Sincerely,

Louis Navellier

Editor, ���Ҵ�ý 360

The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

NVIDIA Corporation (NVDA)

The post Washington Just Bought a Piece of an American Icon – Here’s What’s Coming Next… appeared first on InvestorPlace.

Just 50 years ago, a factory worker and a company executive might have seen their fortunes rise and fall together. But now, as AI drives productivity gains that would have once seemed impossible – sending AI stocks to the moon – gains are flowing almost exclusively upward…

As the Institute for Policy Studies’ Inequality.org points out: “America’s top 1 percent…holds more than half the national wealth invested in stocks and mutual funds. Most of the wealth of Americans in the bottom 90 percent comes from their homes – the asset category that took the biggest hit during the Great Recession.”

That means that the monster runs we’ve seen in AI stocks are contributing to a wealth chasm that makes previous economic inequalities look quaint by comparison.

In fact, between March 18, 2020 and December 3, 2024, the combined wealth of America’s top 12 billionaires increased by more than $1.3 trillion – a nearly 200% rise.

Who’s in that cohort? Elon Musk, Jeff Bezos, Mark Zuckerberg, Jensen Huang, Rob and Jim Walton… Some of the biggest proponents of AI and the buildout of an autonomous future.

In other words, AI is creating fortunes at warp speed. And for some, it’s multiplying them. 

But if you’re feeling left behind, perhaps fearful for your financial future in this new technological era, all hope is not lost…

AI Redraws the ���Ҵ�ý Map

Of course, we understand why you’d feel that way. The Age of AI hasn’t lifted all boats but has instead changed the playing field (though, it certainly hasn’t been leveled).

Since ChatGPT’s breakout debut in late 2022, the S&P 500 has fractured. Certain sectors have surged ahead, supercharged by AI’s rocket fuel. Yet, ‘safe stocks’ – like consumer staples, healthcare, and utilities – have barely moved.

To get a sense of this, let’s take a closer look at the impact of AI in each of the sectors surging ahead:

• Tech companies are heavily investing in AI and building the infrastructure for it; chipmakers like Nvidia (NVDA) and Google’s parent company, Alphabet (GOOGL), are at the forefront here.
• Firms in this sector are using AI to develop new products, manage data, and bolster cybersecurity.

• AI is used to optimize networks, manage traffic in real-time, and enhance customer service with personalized interactions and chatbots.

• AI analyzes transactions in real-time to flag fraudulent activity at a much faster pace than human auditors. 
• Algorithmic systems execute trades at optimal times based on analysis of large data sets

• We’re witnessing the rise of ‘smart factories,’ where AI is improving efficiency, increasing safety, and paving the way for lower labor costs.
  • Increasingly, AI-powered collaborative robots, or ‘cobots,’ work alongside human employees, taking on repetitive or physically demanding tasks

As a result, the companies within these sectors have been much more likely to enjoy significant stock gains.

The reason is simple: AI creates exponential gains where it can cut costs, automate labor, and open new revenue streams…

Investing In the New Regime

A chipmaker like Nvidia sells the picks and shovels of the AI gold rush. 

Banks deploy AI for fraud detection and algorithmic trading, saving billions. 

Logistics firms roll out autonomous supply chains. 

Each of these sectors compounds value because AI turns every dollar invested into more productive output. While many everyday investors assume reliable income means bonds, dividends, or slow-and-steady index funds, these so-called ‘safe’ stocks do not enjoy that multiplier. 

Nevertheless, if they think the big money has already been made – or they’re apprehensive about higher-risk trades – they’re most likely to invest in consumer staples like Pepsi (KO), Disney (DIS), or Chevron (CVX).

Well… guess what? Those ‘safe stocks’ have gone nowhere lately, majorly lagging firms taking an AI-first approach. They face slow growth, sticky input costs, and limited room for disruption.

Investors once found shelter in these stocks during times of market volatility. But in today’s AI-driven economy, that safety now looks more like stagnation.

That means there are just two options here: Either climb aboard the AI Boom Train – or get leveled by it.

The AI Growth Phase Won’t Last Forever

America’s wealth gap is yawning wider every month – not because people stopped working hard, but because AI-linked assets compound faster than traditional ones. Billionaires multiply their fortunes through AI exposure, while everyday investors sitting in ‘safe’ stocks are stuck in neutral.

If you’ve yet to board the AI Boom Train, it’s natural to feel stuck on the wrong side of that divide. But the same forces that are widening inequality can work in your favor – if you know how to spot the shift when skepticism flips into mass belief.

That’s where my Nexus system comes in. 

It uses behavioral analytics, not just stock fundamentals, to find early signs of mass investor excitement, institutional buying, and momentum. In other words, it detects the moment when the market realizes a company’s breakthrough is the real deal…

That recognition is what triggers an ‘AI Income Event.’

Every technology (and stock) follows the same arc: Introduction, Growth, Maturity, Decline. Artificial intelligence is in its growth phase now, the same stage where railroads, electricity, and the internet created the largest fortunes of their eras. But this phase doesn’t last forever; and AI is moving through it faster than any technology in history.

Nexus is your bridge across the divide – a tool to help you capture explosive growth while the window is still open. 

Don’t wait until Phase 2 closes. Learn how Nexus can help you bridge this AI-driven wealth divide before this boom cycle leaves you behind.

The post How to Survive and Thrive as AI Compounds America’s Wealth Chasm appeared first on InvestorPlace.

In the mid-1970s through early 1980s, the “Prince of the Pit,” Richard Dennis turned $400 into more than $200 million trading futures.

He’s famous for creating the Turtle Traders experiment in the 1980s, proving that complete novices could become million-dollar traders by following his rules.

And what was the core principle behind his rules?

From Dennis:

Whatever method you use to enter trades, the most critical thing is that if there is a major trend, your approach should assure that you get in that trend.

“Trend” is one of the most overlooked – and most critical – drivers of making money in the market.

Fundamentals and valuations absolutely matter, but even the best analysis can’t save you if you’re trying to swim against a fast-moving current. Many once-confident investors have gone broke waiting for the market to “make sense” under their cash flow models and valuation math.

As John Maynard Keynes famously put it:

The market can stay irrational longer than you can stay solvent.

Today, nervous bears are pointing toward a handful of indicators that scream “stocks are historically overvalued! Beware a crash!”

And they’re not wrong.

But today’s big-picture trend is clearly bullish. Momentum is strong, and even if we are in the final innings of a bull market, history shows late-game returns can be the most spectacular.

So, let’s talk about how to trade today’s bull while respecting the bust that might come tomorrow.

First, let’s address our recent all-time highs.

Do we need to worry about remaining in the market as we push into blue sky territory?

Let’s go to my friend Meb Faber, CEO/CIO of Cambria Investments, also a widely respected quant analyst:

Is buying stocks at an all-time high a good idea?

No, it’s not a good idea, which should surprise no one.

The fact that it is a GREAT idea, well, that should surprise everyone.

Meb detailed the results of a back-test he ran that had two rules: remain in stocks if they’re trading at all-time highs at the end of the month. If they’re not at all-time highs, then move into government bonds.

Here’s the conclusion:

It turns out, it’s a pretty damn good strategy.  Better returns than just stocks, lower volatility, and WAY lower drawdowns…

It’s an acknowledgement that all-time highs are nothing to be afraid of.

Meb isn’t the only investor who has come to this conclusion.

William O’Neil, who founded Investor’s Business Daily and created the very popular swing-trading system known as CANSLIM, had a quote about this:

It is one of the great paradoxes of the stock market that what seems too high usually goes higher and what seems too low usually goes lower.

And with interest rate cuts from the Federal Reserve now appearing increasingly likely in September, this bull will get some fresh fuel.

Let’s go to our hypergrowth expert Luke Lango:

Pile tariffs and extra stimulus on top [of the coming interest rate cuts], and you could get late-2026 or early-2027 inflation that forces the Fed back into “Volcker mode.”

That would risk ending this AI Boom just as the dot-com boom ended in the early 2000s.

Now, as we noted in Friday’s Digest, Luke believes we have at least 12 more months before this AI boom will run into macro headwinds and morph into a bust – and that period could produce fireworks.

Back to Luke:

The last few years of a stock market boom can often be the most profitable.

Just look at the Dot-Com Boom of the 1990s.

Tech stocks had some amazing years therein. The Nasdaq Composite rallied 40% in 1995, about 20% in ’96, another 20% in ’97, and then 40% again in ’98.

But tech stocks saved their best for last, with the Nasdaq soaring almost 90% for its best year ever in 1999.

Then, the bust started in 2000.

Point being: The best year for tech stocks in the ’90s was the final year of the Dot-Com Boom.

Luke is trading bullish momentum – specifically, bullish AI/tech stocks – through a “stage analysis” framework.

For newer Digest readers, stage analysis is an analytical framework that categorizes a stock’s price movement into four stages:

• Introduction (sideways at a bottom)
• Growth (a bullish breakout)
• Maturity (sideways at a top)
• Decline (a bearish drawdown)

This is a powerful framework that helps demystify the market, providing a helpful framework for when to remain with a trade versus when to take profits.

I’d bet that if you reviewed your last handful of losing trades, there’s a good chance you made one of two inadvertent mistakes:

But given the risk of an eventual tech bust, he’s more comfortable trading those moves with the expectation of taking profits in Stage 3 rather than holding for the long haul.

Here’s Luke:

AI is also creating the biggest, fastest moves I’ve seen. I call them “AI Income Events” — and most investors miss them.

With these moves, you can pursue income far faster than simple buy-and-hold.

Many of my members are doing exactly that with a system my team built called Nexus, which helps us zero in on when a stock enters Phase 2—the growth phase.

Our mission is simple: maximize gains in AI stocks while the trend is alive and strong.

To illustrate the gains and associated timeframes that Luke targets with this stage analysis trading framework, he highlighted a handful of recent stock moves:

• AppLovin Corp. (APP) +500% in five months.

• SoundHound AI Inc. (SOUN) +300% in three months.
• Palantir Technologies Inc. (PLTR) +290% in five months.
• Super Micro Computer Inc. (SMCI) +233% in just two months.
• BigBear.ai Holdings Inc. (BBAI) +100% in weeks.

Back to Luke:

AI isn’t just another tool—it’s a multiplier,

It boosts efficiency, decision-making, marketing, product development, customer engagement—everything. Companies that adopt AI don’t inch forward – they leap.

(Disclaimer: I own APP.)

You can do it by hand – pouring over thousands of charts, looking at moving averages, momentum indicators, and trade characteristics like volume – but this is unrealistic in a fast-moving market. It just requires too much time.

That’s why Luke created Nexus, a proprietary behavioral-analytics system that spots when a stock is about to enter Phase 2.

It scans thousands of stocks along with millions of data points to flag real-time breakouts across sectors (especially AI Income Events).

Back to Luke:

When Nexus lights up, behavior is shifting: Traders pile in, institutions move money, and Wall Street wakes up. If you’re positioned, you can ride the wave — potentially to 200%, 300%, even 400%+ gains.

Volatility isn’t a threat. With the right system, it’s your edge.

Based on initial trade capital of just $5,000, here’s Luke:

The challenge is simple: Generate $30,000 in the next six months by targeting AI Income Events?

Over the next six months, I want you to see how AI Income Events can transform your portfolio.

Using my Nexus system, you’ll get alerts on exactly which stocks are entering Phase 2 and when to act.

Luke just put together a special free broadcast that reveals more about how Nexus works – and how it beats dividends, bonds, options, or any other “traditional” income strategy by 40X.

It’s about catching the tide when it runs.

Right now, that tide is undeniably bullish, with momentum surging through AI and tech.

Fundamentals still matter, but as Dennis and Keynes both warned, focusing exclusively on them will be counterproductive if they suggest battling against the prevailing current.

Luke’s goal with a stage analysis framework is simple: maximize trading gains while the bull is alive, then step aside before the bust.

More on this later this week. But to learn more now, click here.

Have a good evening,

Jeff Remsburg

The post How to Trade Today’s ���Ҵ�ý appeared first on InvestorPlace.

At the Fed’s annual Jackson Hole meeting, the Fed Chair issued a dovish statement, sending stocks back into the green. Essentially, Powell all but confirmed a rate cut was coming in September.

But will this strength continue? Well, it will largely depend on NVIDIA Corporation’s (NVDA) earnings, which come out on Wednesday after the market closes. The company’s guidance will be key and could make or break the market. I’ll give my full thoughts on NVIDIA’s earnings later this week in ���Ҵ�ý 360, so keep an eye on your inbox for that.

In the meantime, in this week’s Navellier ���Ҵ�ý Buzz, I reviewed the details of Powell’s speech at Jackson Hole. I also discussed what caused the swings in the market as well as 11 stocks releasing earnings this week, including The J.M. Smucker Company (SJM) and CrowdStrike Holdings, Inc. (CRWD).

Click the image below to watch now.

If you’d like to see more of Navellier ���Ҵ�ý Buzz, click here to subscribe to my YouTube channel.

How to Prepare for What’s Next…

Now, as we all know, President Trump has been giving Powell a lot of grief lately.

But there’s a reason for that.

See, Trump is desperate to reignite growth in the American economy.

After all, mid-term elections are right around the corner.

We all know lower interest rates will help. But to really get the economy cooking, he and his team are going to need to make some unconventional moves.

One way he’ll do that is with Executive Order #14196.

This is the directive that I predict will lead to the creation of America’s first sovereign wealth fund.

I call this the MAGA Fund for short, and I believe Trump and his team will use it to tap into “reserve accounts” all across the country.

For the first time ever, Washington is planning to deploy a massive wave of investments into these assets.

It’s unlike anything we’ve seen before, and it could lead to a windfall for a handful of companies that are in a prime position to benefit. That’s why I put together a special briefing that details everything you need to know.

Click here now to learn more.

Sincerely,

Louis Navellier

Editor, ���Ҵ�ý 360

The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

NVIDIA Corporation (NVDA)

The post Jackson Hole Fallout: 11 Stocks to Watch appeared first on InvestorPlace.

August is typically a volatile month for the market.

Many investors take vacations, which leads to lower trading volumes. And with fewer buyers and sellers, seemingly small bits of news or events can cause hefty market swings.

This morning, for instance, stocks pulled back as investors cautiously await Nvidia Corp.’s (NVDA) earnings report later this week. As a major AI “Builder,” any disappointment could have a significant ripple effect.

And before Friday’s rate-cut hints from Fed Chair Jerome Powell, markets pulled back almost all last week, over a cluster of catalysts including hot inflation prints and consumer-spending worries.

But as I’ve said before and will continue to say, there is opportunity in volatility.

My InvestorPlace colleague Luke Lango agrees…

Last week’s set up was ripe for a dip: stocks “priced for perfection,” crowded positioning, and Powell anxiety.

The fundamentals haven’t changed. The economy looks solid, inflation is easing, and rate cuts remain on the horizon.

And the driver since late 2022 hasn’t changed either: artificial intelligence.

AI demand is accelerating, spending is exploding, and profits tied to AI are swelling.

Right now, we’re in between catalysts.

So, what do we do in the meantime?

Back to Luke…

Look for pullback entries in your favorite AI names — smart for long-term gains.

But AI is also creating the biggest, fastest moves I’ve seen. I call them “AI Income Events” — powerful price surges when a company meaningfully integrates AI.

With these moves, you can pursue income far faster than simple buy-and-hold.

Luke and I share the same sentiment: Volatility isn’t a threat. In fact, with the right system, it’s your edge.

That’s why Luke and his team built Nexus, a proprietary behavioral-analytics system that flags real-time breakouts across sectors.

On Wall Street, AI Income Events show up as sudden bursts of hypergrowth, or what Luke calls Phase 2.

Phase 1 is build-and-experiment with AI. Phase 2 is then when AI drives results — and where the biggest gains tend to happen.

AI is in Phase 2 now, but this window won’t stay wide open forever. The easy triple-digit runs will get rarer within a year, Luke says.

So, he has a challenge for you that I would like to share today.

I’ll dive into the details below – but first, let’s take a look back at what we covered here at Smart Money last week…

Smart Money Roundup

2 “AI Filtered” Plays Every Investor Needs Now

August 20, 2025

As an investor, it’s critical to double-check that nothing is obstructing our analytical abilities – especially now in the era of “everything AI.” To ensure you don’t get burned running toward the hottest, hyped-up AI plays, I’ve identified four AI investment categories, each of which offers different levels of risk and reward. Read Wednesday’s issue now for details on two of those categories – and a company for each.

One Adopts AI, One Survives It – 2 AI Plays to Buy Now

August 21, 2025

We must view every new investment opportunity through the lens of AI. One way to do that is by focusing only on companies that apply AI in cost-effective and/or market-leading ways. In Thursday’s issue, I explain how Meta fails in that regard – and share the other two distinct AI investment categories… along with a company that I recommend for each.

Drug Pricing in the Trump Era: Where to Invest Now

August 23, 2025

This year, pharma stocks are behaving as if President Donald Trump’s threats to cut drug prices hold no power. Shares of healthcare firms have barely budged under his administration. However, we believe that certain healthcare companies will do a lot better than flat under the Trump administration. Let’s take a closer look at how drug prices are set, the power the president has to influence them – then, I’ll point you toward the right healthcare stocks to invest in.

Who’s the Next Apple? 3 Breakout Stocks That Point the Way

AI is transforming industries at a breakneck pace. It’s a force that’s fundamentally changing how fast companies can grow, scale, and generate profits – producing an unusual class of stock breakouts. Luke Lango calls these “AI Income Events” – moments when hype flips into adoption-driven growth. So, now that we’re in the AI innovation cycle, Luke will share three significant “AI Income Events” that rewarded investors with huge gains… and show you how his team is spotting the next round.

Join the Challenge

Without further ado, here is Luke’s challenge…

Can you generate $30,000 in the next six months by targeting AI Income Events?

In just half a year, he wants you to see how AI Income Events can transform your portfolio. Using his Nexus system, you’ll get alerts on exactly which stocks are entering Phase 2 and when to act.

Pullbacks like the one we saw last week aren’t threats… they’re invitations. They shake out the weak hands and prepare the ground for the next big move.

The only question: Will you be ready?

He just put together a special free broadcast going into far more detail on Nexus – and on how this strategy beats dividends, bonds, options, or any other “traditional” income strategy by 40X.

You can click here to join Luke in his AI Income Challenge.

And I’ll be back here later this week with more on Nvidia’s earnings.

Regards,

Eric Fry

The post How to Go From ���Ҵ�ý Dip to Massive AI Gains appeared first on InvestorPlace.

Back then, investors piled into nascent dot-coms. Many lost everything. Only those who caught the right companies – like Amazon (AMZN), eBay (EBAY), and PayPal (PYPL) – turned small stakes into life-changing wealth.

The Nasdaq quintupled between 1995 and 2000 before crashing 77%. But the survivors went on to dominate trillion-dollar industries. 

Today, AI is following the same explosive curve – except adoption is happening faster, products are already delivering profits, and analysts estimate it could add up to $16 trillion in market value within a few years. (And that’s just within the S&P 500…)

This isn’t just hype. ChatGPT reached 100 million users in two months: the fastest adoption of any consumer technology in history. Now companies across the S&P are embedding AI, with earnings already reflecting the leap. 

The breakout phase has started, and the charts prove it.

Let’s take a look at some of the biggest AI stock winners so far – and how this boom is creating vertical moves investors haven’t seen since the early internet.

5 AI Stocks That Turned Small Stakes Into Life-Changing Wealth

We don’t have to imagine what AI’s breakout looks like. It’s already here, and the stock market has been littered with triple- and quadruple-digit winners in just the past few years.

• Celestica (CLS) is leveraging AI to optimize supply chains and automate electronics manufacturing. Its stock has soared nearly 1,500% since late 2022. 
• Power Solutions (PSIX) is using AI-driven analytics to boost industrial performance and predictive maintenance across critical systems. PSIX stock is up more than 2,600% since late 2022.
• AppLovin (APP) has supercharged its AXON ad-targeting algorithm with AI, revolutionizing mobile advertising and sending profits rocketing higher (343% year-over-year in fiscal year 2024). APP stock has exploded 3,800% since late 2022. 
• Dave (DAVE) employs AI to enhance fraud detection and personalized financial tools, making its neobank platform more competitive. DAVE has soared more than 1,900% since 2022.
• Palantir (PLTR) has transformed enterprise decision-making with its AIP platform, embedding AI into logistics, finance, defense, and healthcare. PLTR has popped 2,300% since late 2022. 

This isn’t a once-in-a-blue-moon phenomenon. These moves are happening left and right. We’ve seen dozens of them in just the past year.

Now, imagine capturing even a fraction of these events…

A $10,000 stake in CLS in late 2022 would be worth nearly $160,000 today. The same in PSIX would be almost $275,000 today. And for APP? Nearly $400,000. 

That means that if you had invested $10,000 each into Celestica, Power Solutions, and AppLovin back in late 2022, your initial $30,000 would be worth more than $800,000 today. 

This is the power the AI Boom holds.

Make Moves Before AI’s Growth Phase Fizzles

AI isn’t just another tool; it’s a multiplier. 

It boosts efficiency, decision-making, marketing, product development, customer engagement – everything. Companies that adopt AI don’t inch forward. They leap. 

On Wall Street, that shows up as sudden bursts of hypergrowth, aka Phase 2.

Phase 1 is build-and-experiment. Phase 2 is when AI drives results – and where the biggest gains tend to happen. 

AI itself is in Phase 2 now, so this window won’t stay wide-open forever. Soon, we’ll move into Phase 3: Maturity – and, eventually, Phase 4: Decline. 

In other words, today’s easy triple-digit runs will get rarer, likely within a year.

That’s why I built Nexus, a proprietary behavioral-analytics system that spots when a stock is about to enter Phase 2. It cuts through hype to flag real-time breakouts across sectors (especially what I call “AI Income Events”: those monster, triple-digit moves when a stock goes vertical). And most investors miss them.

When Nexus lights up, behavior is shifting: Traders pile in, institutions move money, and Wall Street wakes up. If you’re positioned, you can ride the wave – potentially to 200%, 300%, even 400%-plus gains.

Volatility doesn’t have to be a threat. With the right system, it’s your edge. 

The AI Income Challenge: Targeting $30K in Gains

With Nexus, you can participate in the most powerful technological revolution of our lifetimes – and capture the wealth creation that comes with it.

In fact, I have a challenge for you…

Generate $30,000 in the next six months by targeting AI Income Events.

I want you to see how these events can transform your portfolio over the next six months. Using my Nexus system, you’ll get alerts on exactly which stocks are entering Phase 2 and when to act.

I just put together a special free broadcast going into far more detail on Nexus – and how this strategy beats dividends, bonds, options, or any other “traditional” income strategy by 40X.

Click here to join me in the AI Income Challenge and start targeting your first $30,000 in cash.

The post 10X AI Stocks? The Clock’s Ticking appeared first on InvestorPlace.

This Week’s Ratings Changes:

Upgraded: Buy to Strong Buy

Downgraded: Strong Buy to Buy

Upgraded: Hold to Buy

Downgraded: Buy to Hold

Upgraded: Sell to Hold

Downgraded: Hold to Sell

Upgraded: Strong Sell to Sell

Downgraded: Sell to Strong Sell

To stay on top of my latest stock ratings, plug your holdings into Stock Grader, my proprietary stock screening tool. But, you must be a subscriber to one of my premium services. Or, if you are a member of one of my premium services, you can go here to get started.

Sincerely,

Louis Navellier

Editor, ���Ҵ�ý 360

The post Weekly Stock Grader Analysis: Upgrades & Downgrades on Top Blue-Chip Stocks appeared first on InvestorPlace.

And now, it’s AI transforming industries at a breakneck pace. It’s a force that’s fundamentally changing how fast companies can grow, scale, and generate profits. It is therefore producing an unusual class of stock breakouts.

InvestorPlace Senior Analyst Luke Lango calls these “AI Income Events” – moments when hype flips into adoption-driven growth.

A few recent AI Income Events include…

• Super Micro Computer (SMCI) – 233% in just 2 months
• SoundHound AI Inc. (SOUN) – 300% in a few months

• BigBear.ai Holdings, Inc. (BBAI) – 100% in weeks
• Palantir Technologies Inc. (PLTR) – 290% in 5 months
• AppLovin Corporation (APP) – 500% in 5 months

But what history shows us is clear…

The biggest breakthroughs – and the biggest stock market winners – almost never come from the incumbents. They come from the upstarts.

So, Luke is joining us today to share how three little-known companies triggered “AI Income Events”… and how you can turn a $5,000 stake into $30,000 within six months by capturing a series of these events.

Take it away, Luke…

One August morning in 1981, Steve Jobs sat at Apple Inc.’s (AAPL) headquarters with a Wall Street Journal folded under his arm.

The headline: IBM Corp. (IBM) was entering the personal computer market.

Apple, barely 5 years old, suddenly found itself up against Big Blue.

With trademark audacity, Jobs turned the moment into theater. Apple ran a cheeky full-page WSJ ad: “Welcome, IBM. Seriously.” Later, in a 1983 speech, Jobs cast Apple as the rebel, warning “IBM wants it all.”

That spirit paid off. The Macintosh, launched in 1984 with its iconic Super Bowl ad, made Apple the symbol of insurgent tech. Since then, Apple stock has soared nearly 175,000%, while IBM is up just about 2,500%.

Apple isn’t alone in this story.

History shows transformational breakthroughs usually come from upstarts, not incumbents. Each innovation cycle produces Davids that topple Goliaths.

Now that we’re in the AI innovation cycle, let’s look at three Davids whose “AI Income Events” rewarded investors with huge gains.

Their biggest moves are likely largely past — so I’ll also show you how my team is spotting the next round…

Three “AI Income Event” Case Studies

AI has become the great equalizer. Any small firm can now harness it to leap ahead of giants.

The challenge is spotting when hype (Phase 1) flips to adoption-driven growth (Phase 2). That’s where my Nexus system comes in.

I’ll tell you more about Nexus in a minute, but first let’s take a look at three AI Income Events it uncovered…

Case Study #1: Back in October 2023, most investors had never heard of our first case study.

It was a Microsoft partner in cloud software — a solid business, sure, but hardly front-page material. Then on October 10, this company unveiled an AI-powered information lifecycle management platform.

That was the spark for AvePoint Inc. (AVPT).

Nexus flagged it immediately. Not just because the word “AI” appeared in a press release, but because my system detected a shift in business momentum — the transition from Phase 1 story to Phase 2 execution.

We moved in.

Within a month, we had partial profits of +12.9%. By May 2024, we booked another +24.1% gain.

And by August 2025, we cashed in for a total gain of +105%.

That’s the kind of AI Income Event that can turn a modest stake into serious cash.

Case Study #2: If you’ve ever applied for a mortgage, you know how painful it can be. Endless forms. Weeks of back-and-forth.

Our second case study was already digitizing the process — but in September 2023, it rolled out an AI chatbot to streamline mortgage applications.

Nexus went off again.

On Dec. 12, 2023, I recommended  Blend Labs Inc. (BLND) to my members. Within weeks, the stock sprinted for a quick +22% gain, then kept running to +40%. By March 2025, it had surged to +108%.

That’s not a sleepy dividend drip. That’s not a 10-year bond.

That’s a stock doubling in less than 18 months — all because an AI Income Event creating efficiency overnight in an old, inefficient industry.

Case Study #3: Our third and final case study builds next-generation drones and autonomous warfare systems. It was embedding AI into defense hardware in a way that seemed niche a few years ago — until geopolitics suddenly made it urgent.

Nexus picked up the signal on Kratos Defense & Security Solutions Inc. (KTOS) early, in May 2023, before the mainstream had caught on. We rode this position with phased trims, ultimately locking in a monster +324% gain.

This was the definition of a hidden AI Income Event: not obvious, not hyped, but absolutely transformative once the market realized the power of the AI catalyst behind Kratos’ growth.

Now, let’s take a look at how Nexus works…

How Nexus Spots the Shift

The stock market has phases. In fact, every innovative trend follows a predictable progression:

Phase 1 – The Speculation Stage: All hype, headlines, and early whispers… stocks with more story than substance.

Phase 2 – The Growth Stage: Real products, real adoption, real numbers. This is where the biggest gains happen.

Phase 3 – Maturity: Widespread adoption and slower, steadier growth as the trend becomes mainstream.

Right now, AI itself is solidly in Phase 2. And Nexus can detect when an individual company within makes that critical leap from Phase 1 to Phase 2.

That’s when we see an “AI Income Event.”

I believe we’re only about a year away from AI as a whole entering Phase 3 – that mature stage where growth slows and adoption is everywhere. That means the window for Phase 2 AI Income Events is closing.

Every month you wait is another month when stocks like AvePoint, Blend Labs, or Kratos could slip past you.

Most people won’t capture these moves – just as they missed Apple’s first few years – betting instead on larger, more established companies … and then saying it “was obvious all along” after the fact.

That’s why I created the AI Income Challenge: to encourage everyday investors to step off the sidelines and see if they can use my strategy to capture $30,000 in cash payouts in just six months. The opportunities are there, but seizing them requires action now.

I just put together a special free broadcast going into far more detail on Nexus – you can click here to join me in the AI Income Challenge and start targeting your first $30,000 in cash.

Regards,

Luke Lango

Senior Investment Analyst, InvestorPlace

The post Who’s the Next Apple? 3 Breakout Stocks That Point the Way appeared first on InvestorPlace.

Last week, we wrote about an investing strategy reminiscent of the popular Eat This, Not That! diet book series. 

After all, if you had a magic sorting hat that could separate all stocks about to go down (or eliminate all unhealthy foods), anything remaining must be good for your health and wealth. I used a lithium versus coal example to illustrate the stunning simplicity of favoring high-performing sectors over shrinking ones. 

However, this strategy doesn’t necessarily provide the timing for these long-term moves. Some of the best industries can remain undervalued for years. Other times, fast-growing firms like Nvidia Corp. (NVDA) can rise so quickly that many investors miss out. 

What’s needed is a system that can also help you identify the best times to invest… something powerful enough to sense what will happen in the next six months… or even the next 30 days. 

That brings us to what InvestorPlace Senior Analyst Luke Lango calls Nexus. It’s an AI-powered system that helps determine when a stock is about to enter Phase 2 – a breakout moment where major returns happen. 

Nexus has a phenomenal track record. Over the past several months, it’s identified AI winners including: 

• Palantir Technologies Inc. (PLTR). 290% gains in five months (and a subsequent well-timed sale). 
• AppLovin Corp. (APP). 500% gains in five months. 
• BigBear.ai Holdings Inc. (BBAI). 100% gains in just a few weeks. 

In fact, Luke is so confident in his system that he’s issuing an AI Income Challenge, to see how many people can use Nexus to generate cash – potentially turning $5,000 into $30,000 – in the next six months. 

You can see more details here.

Now, as you watch the presentation, you’ll quickly notice that many of Nexus’ top picks are AI-related companies that have not yet taken off the way Nvidia has. These stocks are still in their early Phase 2 stage of growth, giving AI investors a second chance at AI-powered returns. 

Let’s dive in this week with two examples from Nexus… 

The Chinese AI Startup 

In January, a small Chinese startup named DeepSeek shocked the world by launching a chatbot that outperformed all but the very best Western models. The chatbot, DeepSeek R1, quickly became a hit among app users, creating a new competitive threat to American AI firms. 

Since then, Chinese AI companies have continued to innovate. In July, Alibaba Group Holding Ltd. (BABA) launched Qwen-3, an advanced chatbot that’s only four to five months behind Alphabet Inc.’s (GOOG) and OpenAI’s frontier models. Then in August, humanoid robots from Hangzhou-based Unitree outperformed even the best American versions at the World Humanoid Robot Games. 

That’s why investors should pay attention to a growing Chinese startup named WeRide Inc. (WRD), which has become a leader in self-driving technologies. 

WeRide was founded in 2017 by Tony Han, the former chief scientist of Baidu Inc.’s (BIDU) autonomous driving unit. He quickly received funding from a Renault-Nissan-Mitsubishi alliance and Nvidia, among others. 

The promising firm has since become China’s second-largest provider of robotaxi services behind only Baidu’s Apollo Go. In July, WeRide announced that total revenues had surged 61% thanks to significant growth in the Middle East (where it now operates the largest robotaxi fleet in the region) and a new partnership with China’s Chery Group. Its fleet size is now roughly the same as Waymo’s. 

Luke’s Nexus system believes a new surge is on the way. It awards WeRide one of the top scores in its universe of over 5,000 stocks… and likely for good reasons. 

On August 21, WeRide unveiled one of its most ambitious projects yet: a one-stage, end-to-end advanced driver assistance system (ADAS) created in conjunction with Bosch, a leading supplier of components and systems to automakers. This system integrates the “sensing” and “acting” of self-driving vehicles into a single unit, making it a one-stop solution for automakers’ self-driving needs. This WeRide-Bosch project is scheduled to enter mass production later this year. 

The opportunity here is vast. Many traditional automakers lack the programming talent to build self-driving technologies, and WeRide’s partnership with Bosch provides a compelling alternative. WeRide could eventually become its own “Tier 1” auto components supplier.  

In addition, the company’s robotaxi services continue to rapidly expand. On August 6, the company began testing robotaxi services in Beijing, and we should expect more soon. 

It’s also notable that WeRide’s $1.7 billion enterprise value is minuscule compared to Waymo’s $45 billion valuation, even though both firms have similar robotaxi capabilities and fleets. So, don’t be surprised if this top-scoring AI pick from Luke’s Nexus system soon begins its upward leg of Phase 2 growth. 

And the American Version 

Meanwhile, American companies have also been working frantically to stay ahead, especially in Physical AI.  

The best-known names in robotics, like humanoid robot maker Figure AI and Kratos Defense & Security Solutions Inc. (KTOS), have already been bid to multibillion-dollar valuations, reducing potential future returns. 

Yet, Nexus has managed to find one Physical AI company that’s still early in Phase 2: Ondas Holdings Inc. (ONDS). 

Ondas is a fast-growing provider of industrial wireless networks and commercial drones. It was the first company to receive certification by the Federal Aviation Administration for an automated aerial security drone, and it has continued to improve on its products. In June, it secured a $14.3 million order for its commercial Optimus drone system. 

This is likely just the start.  

In 2023, Ondas acquired Iron Drone, an Israeli firm developing an autonomous counter-drone system. The two companies combined their technologies and launched a commercial version the following year. 

This new drone-in-a-box system combines surveillance, precision strikes, and aerial threat interception into a single offering. In other words, it’s a military-grade drone used to hunt other drones without GPS, radio jamming, or dangerous munitions. Here’s how the company describes it: 

Launched from a designated pod, the intercepting drone flies autonomously towards targets under radar guidance, then identifies and “locks on” to the target using proprietary computer vision and artificial intelligence (AI) capabilities. The intercepting drone follows the target, then incapacitates and captures it and using a ballistic net and a parachute to safely lower it to the ground. 

Interest has been steadily growing, especially in the wake of Ukraine’s Operation Spiderweb, where 117 attack drones were used deep inside Russian territory to destroy a dozen high-value aircraft. (If a similar drone attack targeted a U.S. airport, Ondas’ Iron Drone would be safer than firing weapons blindly into the sky.)  

Within a week of the operation, the White House issued an executive order, “Unleashing American Drone Dominance,” to “accelerate testing and to enable routine drone operations, scale up domestic production, and expand the export of trusted, American-manufactured drone technologies.” 

In April, Ondas secured a $3.4 million deal with a European defense contractor on behalf of a government client. Then, earlier this week, the firm inked a $2.7 million contract with a separate defense contractor for multiple drones – likely a test with the U.S. military. The company also recently completed an initial government-led counter-drone program in Europe and Asia, which management believes paves the way for a long-term Homeland Security deployment. 

That should put Ondas on a hypergrowth track. Revenues are expected to triple to $24 million this year, and then almost triple again to $64 million in 2026 (and again to $185 million in 2027). A direct U.S. military order for these drones could turn Ondas into a $10 billion business overnight. 

Of course, this Boston-based startup is a risky bet. The company is not expected to break even until at least 2028 and has little experience in selling projects directly to the Department of Defense.  

Its historical cash flows are also poor, given its startup nature. The firm was forced to raise $173 million of fresh capital this summer, diluting existing shareholders by almost 20%. 

However, the Ondas opportunity is even larger. The U.S. military has now seen the havoc that drones can cause, and Ondas provides a solution that’s showing up at the right place and at the perfect time.  

Finally, shares are up just 45% this year. That leaves far more upside on the table than firms like Kratos, which has already seen a 145% surge. 

The Accelerating Nature of AI Investing 

Most people consider 1977 the birth year of the modern personal computer. That year, the Apple II, Commodore PET, and Tandy TRS-80 all made their debuts. 

Adoption was relatively quick by historical standards. It took roughly 17 years for half of Americans to begin using personal computers – far shorter than the time it took a similar number of us to adopt home electricity (43 years) and the automobile (40 years).  

However, 17 years is still a pretty long time. And that meant investors had many second chances to identify and buy stock in that era’s PC makers. 

Since then, technological adoption has continued to accelerate. It took just six years for smartphones to be adopted by half of Americans, and only three for AI-powered chatbots to achieve the same feat. 

That means there are fewer second chances than ever before to invest in the latest technologies. Smartphone investors needed to act relatively quickly to buy the winners of the 2010s. Meanwhile, Nvidia’s 10X rise happened in just 30 months 

We’re going to see new AI startups achieve similar gains in even shorter timeframes as technology continues to improve at an exponential rate. 

Fortunately, Luke’s Nexus system helps us overcome this challenge, identifying companies in their prime stage of growth – a moment when the biggest, fastest stock moves are captured.  

During the AI Income Challenge, he’ll discuss more on how the Nexus system works, including its ability to beat dividends, options, or any other “traditional” income strategy.  

Click here to watch Luke’s presentation and learn about the opportunities he’s now seeing in this fast-moving market. 

Until next time, 

Tom Yeung, CFA 

���Ҵ�ý Analyst, InvestorPlace 

P.S. Due to travel conflicts, I’ll bring you your next Sunday Digest on Sunday, September 7. 

Thomas Yeung is a market analyst and portfolio manager of the Omnia Portfolio, the highest-tier subscription at InvestorPlace. He is the former editor of Tom Yeung’s Profit & Protection, a free e-letter about investing to profit in good times and protecting gains during the bad.

The post Missed Out on Nvidia? This AI Found 2 Stocks Instead appeared first on InvestorPlace.

Over the centuries, humanity’s brightest minds have made powerful advances, creating innovative technologies that went on to change the fabric of our daily lives.

The printing press, the steam engine, electricity, the internet, and the smartphone.

Each were revolutionary, changing the game for how effectively we disseminate information, unlocking efficient means of mass transportation, enabling the development of other transformational inventions like the lightbulb, refrigerator, heating and cooling systems…

At first, investors dismissed them as novelties. But as belief took root, the stocks tied to those technologies exploded higher.

At present, it’s artificial intelligence’s time in the spotlight.

But this breakthrough is a little different – because AI is evolving faster than anything we’ve seen before. 

For example, it took the television 22 years to reach mainstream adoption. The internet needed five years. The smartphone? Three.

AI has now reached its pivot point… Only it did it in less than 12 months.

What once looked like hype has crossed into mass adoption.

ChatGPT launched in late 2022. By late 2023, it already had 100 million weekly users. Today, it boasts nearly a billion.

That kind of acceleration is unprecedented. And it’s not just reshaping our productivity or how businesses operate. It’s also having a profound impact on the stock market – and how investors capture wealth.

And as investors scramble to catch up, we’re seeing the kind of sudden, vertical surges I call AI Income Events…

AI Stocks in the Explosive Growth Phase

Gone are the days of trickling income plays. “Buy and hold” stocks are few and far between. 

Instead, as AI continues to proliferate throughout the global economy, we’re seeing stock explosions. Companies incorporating AI into their business models are going vertical, often in no time at all. In some cases, we see triple-digit returns in a matter of weeks.

Take mobile app marketing firm AppLovin (APP). For years, the stock flatlined. Then it introduced an AI-powered upgrade to its ad-targeting engine. And within months, the stock skyrocketed nearly 500%.

Since late 2022, AppLovin stock has soared a jaw-dropping 3,800% … while the S&P 500 has risen just about 66%. 

Or Palantir (PLTR) – another long-time flatliner. Then it launched AIP, its AI analytics platform. Five months later, the stock had surged 290%. 

Since late 2022, that stock has surged more than 2,300% higher, again against a sub-70% gain for the whole market.

These are not flukes. They’re the new normal in AI’s growth phase – and they are the exact kinds of moments that Nexus, my behavioral intelligence system, can detect to help you ride those monster breakouts sky-high.

Here’s how…

The Final Word

Just like every technology, every stock follows a four-phase lifecycle: 

• Phase 1: Introduction
• Phase 2: Explosive growth 
• Phase 3: Maturity 
• Phase 4: Decline

Entering a position in Phase 1 isn’t ideal. You’d be waiting to compound gains forever. Likewise, you don’t want to be in Phase 3 or 4, either. That’s when you’re catching scraps at best – and falling knives at worst.

Phase 2 is where the magic happens – where fortunes can be made.

We believe that AI is pushing more and more companies into Phase 2 at breakneck speed. And Nexus is designed to identify them right as they make that leap.

This isn’t about chasing hype or guessing which AI model will win. It’s about mathematically tracking human behavior. As it turns out, greed and fear are predictable. And when investors flip from skepticism to belief in a company’s breakthrough, the results are often explosive…

Every technology hits its moment: when the world suddenly realizes its potential and investors scramble to catch up. That’s Phase 2 in action. In past innovations, it played out over years.

The television had a decade-long Phase 2. The internet’s lasted about five years, and the smartphone exited in three.

Yet, considering its record-breaking adoption rate, AI’s growth phase could end within the next year. Then it will enter maturity, and the fireworks will fade.

That’s why this moment is unlike any other – and why I’ve issued an AI Income Challenge.

Watch my special free broadcast to learn more about how you can transform $5,000 into $30,000 in just a few months.

The post The Secret to AI Stock Fortunes: Tracking Human Behavior in Phase 2 appeared first on InvestorPlace.

Most filmgoers will recognize this quote from the Lord of the Rings movie trilogy…

You have no power here, Gandalf the Grey.

The iconic line is a vivid reminder that even the most powerful figures can seem powerless in certain situations.

This idea is common across movies, books, and other storytelling mediums. Think about when Glinda the Good Witch of the South informs “The Wicked Witch of the West” that she has no power in Munchkinlandin The Wizard of Oz.

This year, this trope has jumped from the silver screen to the biopharmaceutical sector, where pharma stocks behave as if President Donald Trump’s threats to cut drug prices hold no power.

Shares of healthcare firms have barely budged under his administration. Even the president’s declaration on August 5 to impose 250% import tariffs on pharmaceuticals was met with a yawn.

The iShares US Pharmaceuticals ETF (IHE) fell just 1% that day and have traded flat since President Trump won the 2024 election, as the chart below shows.

While not a bloodbath, that’s still not very impressive.

However, we believe that certain healthcare companies can do a lot better than flat under the Trump administration.

So, in today’s Smart Money let’s take a closer look at how drug prices are set, and what power the president has to influence them.

Then, I’ll point you toward the right healthcare stocks to invest in – ones that will continue to rack up gains.

How Are Drug Prices Set?

America’s healthcare and drug system is surprisingly straightforward, once you realize it’s made up of about a dozen separate overlapping programs.

It only looks complex because we have so many of them.

A partial list includes…

• Employer-sponsored insurance
• Medicare
• Medicaid
• ACA insurance (aka Obamacare)
• Department of Veterans Affairs (VA)

That means drug pricing is also relatively straightforward.

To simplify, pharma companies can set whatever list price they want for approved drugs. They can also offer better rates through secret rebates to any of these programs.

For example, the list price for Eliquis, an anticoagulant drug from Bristol-Myers Squibb Co. (BMY), is $606 per month; after rebates, it’s closer to $513. Starting in September, Eliquis will be available to consumers for $346.

But America’s system also means that our average drug prices are higher than elsewhere.

Drug companies charge more here because the United States is richer (an economic concept known as eliminating consumer surplus). They also stick to high prices because there is no centralized authority to demand lower ones.

This drug-pricing scheme has historically suited both political parties. Today, once-chronic diseases like hepatitis C are now curable. HIV is no longer a death sentence. And we’re tantalizingly close to “cancer vaccines” that use the immune system to kill off tumors.

In addition, employer-sponsored healthcare costs are largely paid by employers, which shifts the burden away from employees… and, more importantly, away from government balance sheets.

So, what power does the Trump administration have to change drug prices?

Politics and Pharma

The answer is “quite a lot, but only with Congressional cooperation.”

In 1990, for instance, Congress added upper payment limit (UPL) provisions for Medicaid, the government-run healthcare program for low-income households. Under these rules, Medicaid only pays roughly 45% to 80% of a drug’s average selling price, rather than 103% to 106% that Medicare does.

This illustrates the predicament the Trump administration finds itself in.

On the one hand, the current administration and Congress have an immense amount of power to regulate drug prices, especially within government programs.

On the other hand, the government knows that America’s pharma industry is only as good as regulators will allow it to be. If U.S. drug prices are suddenly capped, moneymaking incentives would disappear, halting approvals for therapies.

That’s why the White House has already started walking back threats to America’s pharma industry.

In May, President Trump signed an executive order that called for “Most Favored Nation” pricing. But on July 31, he sent letters to 17 pharma CEOs that reduced the order’s demands. Under these new terms, pharma firms would only have to provide lower-cost drugs to Medicaid… a system that already pays very little for existing drugs.

Then on August 10, he promised to slash drug prices by 1,500%, highlighting how much of his threats are bluster.

We believe that the Trump administration will continue the pattern of its predecessors: We’ll see performative gestures to reduce drug prices, and then a quiet reversal.

Still, our point is clear: President Trump himself has significant power to coerce pharma companies to lower prices, and he can turn to Congress if he wants to steamroll through legal challenges.

However, the president might not want to disincentivize America’s pharmaceutical industry.

Here’s why…

Our Strategy for Healthcare Stocks

The U.S. is still the global leader in drug development, but it needs funding to stay ahead…

Especially as we’re already seeing some threats to America’s biotech dominance.

Since 2022, Chinese biotechs have developed 639 first-in-class drug candidates, a fourfold increase from the 2018-’22 period. Clinical trials in China are cheaper, and the Chinese government recently made it far easier for small biotechs to raise capital.

No administration wants to be blamed for America’s pharma industry falling behind China’s, and Donald Trump clearly understands that cutting drug prices at the knees is a sure way to do just that.

So, we expect money to continue flowing into American pharma companies to develop new therapies. That said, Eric is focused on healthcare companies without a lot of vaccine revenue.

This is because the Trump administration made it clear from Day 1 that it intends to de-emphasize vaccines.

So, Eric maintains significant investments in vaccine-light healthcare companies in his Fry’s Investment Report service.

And since President Trump took office on January 20,shares of one of our longtime biopharmaceutical holdings has grown 19%, while another one of our drug discovery and development companies has risen 15%.

This only reinforces our strategy: We’ll stay invested in proven healthcare companies while the political debates on drug pricing continue to run their course.

To find out which healthcare stocks Eric recommends at Fry’s Investment Report, click here.

Regards,

Eric Fry

The post Drug Pricing in the Trump Era: Where to Invest Now appeared first on InvestorPlace.

In business and investing, we can’t underestimate the importance of seeing what’s coming next.

This isn’t about reading tea leaves or using a Magic 8 Ball. It’s about analyzing facts and positioning yourself to benefit from what’s coming.

For example, Jeff Bezos didn’t just stumble into Amazon. He noticed internet adoption was growing rapidly and had an idea about what the future would look like. He quit a successful Wall Street career and launched an online bookstore before most people had even logged onto the web.

Netflix has a similar story. CEO Reed Hastings saw that broadband adoption would eventually make streaming viable. While Blockbuster was collecting late fees, he built Netflix to take advantage of streaming even before the infrastructure was fully in place.

While traveling in Italy, Howard Schulz noticed that coffee was about more than just getting your morning caffeine – it was about culture, ritual, and experience. While others sold beans, Schultz built Starbucks into a global lifestyle brand.

The lesson is simple: success often belongs to those who spot the opportunity before it’s obvious and act decisively.

But in the investing world, the dominant narrative is different.

Everyone wants to be like Warren Buffett.

It only makes sense. His track record at Berkshire-Hathaway is a marvel to behold.

According to Bloomberg, from 1965 to 2024, Berkshire-Hathaway averaged annualized returns of 19.9%.

Buffett’s net worth is estimated to be $154 billion as of August 2025, according to Forbes. This makes him the 6th wealthiest individual in the world.

Buffett grew his wealth using a strategy he describes as “buying good companies at a fair price.”

When it comes to holding periods, Buffett is famously quoted as saying, “Our favorite holding period is forever.”

But forever is a long time.

Bezos, Hastings and Schulz remind us that markets don’t reward patience alone. They reward timing.

A method exists to determine the right time to buy a stock and take profits without holding forever.

Investing for Cash Flow

At the InvestorPlace, we’re big believers in holding stocks for long periods. It’s a great way to build long-term wealth.

But it’s also true that part of your portfolio can be dedicated to picking up the fast cash that the market offers right now. Money that can be used to fund your long-term holdings … or a vacation, or college tuition, or maybe just helping you reduce financial worry.

How can you take advantage of these cash-generating opportunities? By finding stocks that are breaking into rapid, sustained uptrends.

Most investors don’t appreciate that stocks don’t move in a straight line. They move in stages.

Even great companies experience long stretches when they do little more than drift sideways. Take a great company like Microsoft – it went sideways for more than a decade.

And while you’re waiting for those kinds of stocks to rise, inflation chips away at your gains and better opportunities pass you by.

So, how do you spot cash-generating moments?

Every stock follows the same predictable pattern with four phases – Phase 1: Introduction, Phase 2: Growth, Phase 3: Maturity, Phase 4: Decline. In some of those phases, stocks rise. In other phases, stocks fall.

The key to making income during a short period in any stock, in any market, at any time, is to buy stocks during Phase 2, the growth phase, and selling when they enter Phase 3, the maturity phase.

It is a simple secret to generating wealth on Wall Street. Yet, few people do it because the Warren Buffett “buy-and-hold-forever” narrative is so dominant.

If you learn about this hidden pattern, you could be equipped with an almost unfair advantage over every other investor.

Hypergrowth investing expert Luke Lango has developed a specific system to find stocks just as they enter Phase 2 – in that sweet spot before everyone else moves into the stock and sends it soaring.

And right now, the AI megatrend is sending stocks higher faster than ever before. Here is how he describes it:

There’s something really unique happening in the markets right now. More and more companies are leveraging the power of AI to develop new technologies, become more productive, and save on costs.

And this isn’t just improving their businesses by a little.

It’s causing some businesses to absolutely boom, as we’ve never seen before.

And their stock prices are responding by going absolutely vertical.

One great example is Super Micro Computer Inc. (SMCI). You can see below that SMCI entered Phase 2 in January 2024 and rolled over into Phase 3 just two months later.

In between, knowledgeable investors – those who knew how to find stocks at the right phase – had the chance to make more than 300% in about two months.

And the number of stocks offering these kinds of opportunities is only growing due to the AI megatrend. AI investing is dominating the media, but the headlines mostly focus on big stocks such as Nvidia or Microsoft.

You usually don’t hear about the smaller stocks that are soaring like SMCI.

People are missing out on the story of these stocks and their rapid growth. But Luke’s system is sending him signals that many opportunities like SMCI are still coming. Here is Luke again:

There’s still a lot of these AI Income Events that are going to be showing up in the markets in the next several months.

Including three really big moves my team and I just uncovered.

You see, I’ve found a systematic way to help me and my team pinpoint these events before they happen. 

And each one could result in a huge payout opportunity.

AI is moving rapidly from an experimental phase to widespread implementation. As this happens, investment opportunities are going to occur that we may never see again in our lifetimes.

But this window of multiple stocks entering Phase 2 isn’t going to last forever.

Luke believes there are only 12 to 18 months before AI reaches maturity. When that happens, these explosive AI Income Events will become much rarer.

Luke has developed a free presentation providing more details about these AI Income Events, and how investors can take advantage.

AI itself is currently in Phase 2 – the growth phase. This means investors have an opportunity to capture these big moves before the technology reaches maturity.

Holding high quality stocks for a long period is a great way to invest, but dedicating a slice of your portfolio to short-term, high-conviction Phase 2 plays isn’t reckless—it’s practical.

It’s about putting your capital where the momentum is strongest and generating cash you can use. That’s what Luke explains about how to find these AI Income Events. You can view the free presentation by clicking here.

The buy-and-hold crowd may wait forever for their payday. But smart investors know: forever is too long to wait.

Enjoy your weekend

Luis Hernandez

Editor in Chief, InvestorPlace

The post Right Stocks at the Right Time Equals Cash appeared first on InvestorPlace.

The headline: IBM Corp. (IBM) was entering the personal computer market.

Apple, barely five years old, suddenly found itself up against Big Blue.

With trademark audacity, Jobs turned the moment into theater. Apple ran a cheeky full-page WSJ ad: “Welcome, IBM. Seriously.” Later, in a 1983 speech, Jobs cast Apple as the rebel, warning “IBM wants it all.”

That spirit paid off. The Macintosh, launched in 1984 with its iconic Super Bowl ad, made Apple the symbol of insurgent tech. Since then, Apple stock has soared nearly 175,000%, while IBM is up just about 2,500%.

Apple isn’t alone in this story.

History shows transformational breakthroughs usually come from upstarts, not incumbents. Each innovation cycle produces Davids that topple Goliaths.

Now that we’re in the AI innovation cycle, let’s look at three Davids whose “AI Income Events” rewarded investors with huge gains.

Their biggest moves are likely largely past – so I’ll also show you how my team is spotting the next round…

Three ‘AI Income Event’ Case Studies

AI has become the great equalizer. Any small firm can now harness it to leap ahead of giants.

The challenge is spotting when hype (Phase 1) flips to adoption-driven growth (Phase 2). That’s where my Nexus system comes in.

I’ll tell you more about Nexus in a minute, but first let’s take a look at three AI Income Events it uncovered…

Case Study #1: AvePoint’s AI Breakout in Cloud Data Management

Back in October 2023, most investors had never heard of our first case study.

It was a Microsoft partner in cloud software – a solid business, sure, but hardly front-page material. Then on October 10, this company unveiled an AI-powered information lifecycle management platform.

That was the spark for AvePoint Inc. (AVPT).

Nexus flagged it immediately. Not just because the word “AI” appeared in a press release, but because my system detected a shift in business momentum – the transition from Phase 1 story to Phase 2 execution.

We moved in.

Within a month, we had partial profits of 12.9%. By May 2024, we booked another 24.1% gain.

And by August 2025, we cashed in for a total gain of 105%.

That’s the kind of AI Income Event that can turn a modest stake into serious cash.

Case Study #2: AI in Fintech – Blend Labs Doubles on Mortgage Automation

If you’ve ever applied for a mortgage, you know how painful it can be. Endless forms. Weeks of back-and-forth.

Our second case study was already digitizing the process – but in September 2023, it rolled out an AI chatbot to streamline mortgage applications.

Nexus went off again.

On Dec. 12, 2023, I recommended  Blend Labs Inc. (BLND) to my members. Within weeks, the stock sprinted for a quick 22% gain, then kept running to 40%. By March 2025, it had surged to 108%.

That’s not a sleepy dividend drip. That’s not a 10-year bond.

That’s a stock doubling in less than 18 months – all because an AI Income Event created efficiency overnight in an old, inefficient industry.

Case Study #3: Defense Stocks Meet AI – Kratos’ 324% Breakout

Our third and final case study builds next-generation drones and autonomous warfare systems. It was embedding AI into defense hardware in a way that seemed niche a few years ago – until geopolitics suddenly made it urgent.

Nexus picked up the signal on Kratos Defense & Security Solutions Inc. (KTOS) early, in May 2023, before the mainstream had caught on. We rode this position with phased trims, ultimately locking in a monster 324% gain.

This was the definition of a hidden AI Income Event: not obvious, not hyped, but absolutely transformative once the market realized the power of the AI catalyst behind Kratos’ growth.

Now, let’s take a look at how Nexus works…

How Nexus Spots the Shift

The stock market has phases. In fact, every innovative trend follows a predictable progression:

Phase 1 – The Speculation Stage: All hype, headlines, and early whispers… stocks with more story than substance.

Phase 2 – The Growth Stage: Real products, real adoption, real numbers. This is where the biggest gains happen.

Phase 3 – Maturity: Widespread adoption and slower, steadier growth as the trend becomes mainstream.

Right now, AI itself is solidly in Phase 2. And Nexus can detect when an individual company within makes that critical leap from Phase 1 to Phase 2.

That’s when we see an “AI Income Event.”

I believe we’re only about a year away from AI as a whole entering Phase 3 – that mature stage where growth slows and adoption is everywhere. That means the window for Phase 2 AI Income Events is closing.

Every month you wait is another month when stocks like AvePoint, Blend Labs, or Kratos could slip past you.

Most people won’t capture these moves – just as they missed Apple’s first few years – betting instead on larger, more established companies … and then saying it “was obvious all along” after the fact.

That’s why I created the AI Income Challenge: to encourage everyday investors to step off the sidelines and see if they can use my strategy to capture $30,000 in cash payouts in just six months. The opportunities are there, but seizing them requires action now.

I just put together a special free broadcast going into far more detail on Nexus – you can click here to join me in the AI Income Challenge and start targeting your first $30,000 in cash.

The post 3 AI Stocks That ‘Pulled an Apple’ – and How to Catch the Next Breakout appeared first on InvestorPlace.

Wall Street cheered the message. Stocks rallied, Treasury yields slipped and traders quickly priced in not just a September rate cut, but the possibility of several more after that.

Now, you may recall I told you back in July that the Fed’s delay in cutting rates was a mistake (here’s that piece).

Then, earlier this month, I showed how the latest data all but guaranteed a September cut (you can read that one here). So, Powell’s farewell speech at Jackson Hole on Friday all but confirmed it.

So, in today’s ���Ҵ�ý 360, I’ll explain how it seems like Powell finally got the message. We’ll go over exactly what he said, and I’ll discuss how it ties back to the warnings I’ve been making for months. We’ll also talk about why it matters for your portfolio – and wrap up by telling you about the hidden corner of the market where I’m expecting to find the market’s next big winners…

Setting the Stage

Every August, central bankers, economists and policymakers gather in Jackson Hole, Wyoming for the Kansas City Fed’s annual economic symposium. It’s one of the most closely watched events of the year.

The theme this time was “Labor ���Ҵ�ýs in Transition: Demographics, Productivity and Macroeconomic Policy.” That couldn’t have been more fitting. The labor market has been flashing warning signs for months now.

We’ve seen high-profile layoffs at Cisco Systems Inc. (CSCO), Oracle Corp. (ORCL) and Deere & Co. (DE). Tech has cut more than 150,000 jobs in 2024 and another 22,000 so far this year. Even universities like George Washington, Boston and Brown have announced job cuts.

And the official data has been just as troubling. The July jobs report showed only 73,000 new jobs – with unemployment ticking up to 4.2%. Even worse, May and June payrolls were revised way down. May’s original estimate of 125,000 jobs was slashed to just 19,000, while June fell from 147,000 to only 14,000.

Despite all this, the July Fed meeting minutes still showed most officials focused more on inflation than employment. That’s why Powell’s speech came as such a surprise.

What Powell Actually Said

Powell struck a very different tone in Jackson Hole. He said the “shifting balance of risks may warrant adjusting our policy stance.” He also admitted that “downside risks to employment are rising.”

Translated from Fedspeak, that means the Fed is finally shifting its focus from inflation to jobs. Powell even conceded that tariffs might have a one-time inflationary impact, but the bigger risk now is the weakening labor market.

This was a sharp turn from just a few weeks ago, when the July Fed minutes showed no labor concerns at all. But as Fed Governor Christopher Waller had warned on Bloomberg, the labor market was in trouble – and the later revisions proved him right. Now Powell is acknowledging it, too.

Now here’s the real kicker – the part that got Wall Street buzzing. Powell said:

Our policy rate is now 100 basis points closer to neutral than it was a year ago. And the stability of the unemployment rate and other labor market measures allows us to proceed carefully as we consider changes to our policy stance.

That’s a mouthful. But what he really said is simple: The Fed still believes rates are too high.

Remember, the Treasury Secretary, Scott Bessent, has been calling for 150 basis points of cuts. Powell didn’t go that far. But by admitting we’re 100 basis “closer to neutral,” he basically confirmed that a full easing cycle is coming sooner or later.

This is why markets ripped higher. Not just because of September, but because the door is now open to multiple cuts over the next several months.

Consumer Spending, Housing and Inflation

Powell also highlighted something I’ve been watching closely: consumer spending. He said, “The decline in growth has largely reflected a slowdown in consumer spending.”

That’s no small thing. When consumers pull back, the entire economy slows. It’s exactly why the Fed can no longer ignore the jobs side of its mandate.

Housing data also supported his case. The National Association of Realtors reported this week that existing home sales in July rose 2% to a 4 million annual pace. That beat expectations for a decline. But hidden in that report was the more important number: median home prices are up only 0.2% in the past 12 months.

That’s critical because shelter inflation has been one of the stickiest parts of inflation. We’ve talked before about owner’s equivalent rent — the measure of housing costs inside the Consumer Price Index (CPI). It’s been stubbornly high for far too long, but it has finally started cooling in recent months. This latest data confirms that this cooling is real and likely to continue to persist.

Bottom line, home prices are barely moving higher, and rents are starting to flatten. If you take away shelter costs, the inflation picture looks much more tame. And that’s why I believe Powell finally felt comfortable flipping the script.

The Takeaway

Wall Street wasted no time responding. The S&P 500 jumped 1.5% today on Powell’s remarks, while the 10-year Treasury yield slipped to 4.26%.

Part of the move was mechanical – short covering after mean-reversion algorithms tried to push winning stocks lower earlier in the week. But make no mistake, Powell’s dovish tone was the real driver. When the Fed signals it’s ready to ease, investors listen.

Traders now see a September rate cut as all but certain, as you can see in the chart below.

August is still a choppy month, and we could see more volatility in September, too.

But the main thing to keep in mind is that we now have a much better backdrop for our fundamentally superior stocks.

How to Prepare for What’s Next…

So, what does all this mean for Powell’s legacy?

To be blunt, he waited too long. I’ve been saying for months that the Fed’s delay in cutting rates was a mistake. We saw it in the weak jobs report, we saw it in the massive payroll revisions and we saw it in the cracks forming across the labor market.

But I’ll give Powell this – at least he went out doing the right thing. His final Jackson Hole speech was his most dovish yet. He finally shifted focus from an inflation fight that had already been won to a labor market that’s clearly softening.

That may not erase the damage from past mistakes (anyone remember “transitory” inflation?). But it does set the stage for what comes next…

See, Powell’s dovish farewell sets the stage for the next major investing cycle. Once the Fed begins cutting, capital starts hunting for growth opportunities. And when you combine that with President Trump’s new economic agenda, we could see a tidal wave of money flowing into select corners of the market.

That’s why I’ve been telling my followers about Executive Order #14196 – the directive that I believe will lead to the creation of America’s first sovereign wealth fund – or what I call the MAGA Fund.

See, most folks don’t know it, but there are “reserve accounts” all across the country – in places like Texas, Alaska and Pennsylvania. They’re worth trillions of dollars. And for the first time ever, Washington is planning to unlock that wealth and channel it into a handful of little-known public companies that manage these assets.

It’s unlike anything we’ve seen before, and it could soon unleash trillions of dollars in government-backed investment.

I’ve done the homework. After months of research, I’ve identified a handful of companies that I believe are directly in line to benefit. And if I’m right, their shares could skyrocket once the money starts flowing.

That’s why I put together a special briefing that details everything you need to know.

Click here now to learn more and get ahead of the crowd now.

Sincerely,

Louis Navellier

Editor, ���Ҵ�ý 360

The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

Cisco Systems Inc. (CSCO)

The post Powell Finally Did the Right Thing – Here’s Where the Money’s Going Next appeared first on InvestorPlace.

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That creaking noise you heard this morning around 10:02 a.m. Eastern time was Federal Reserve Chairman Jerome Powell opening the door to a September rate cut in his speech at the Fed’s annual Jackson Hole symposium.

In our Tuesday’s Digest, we wrote:

Given that there won’t be an explicit pre-commit to a rate cut, we’ll be listening for language indicating that he’s skewing in one direction when he discusses the balance of risks.

Right on cue, Powell said:

With policy in restrictive territory, the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance.

He went on to say that the “downside risks to employment are rising.”

Translation: rate cut.

In Tuesday’s Digest, we also wrote:

On inflation, we’re listening for Powell’s characterization of inflation as ‘one time pass-through’ or persistent.

The more he references the perspective of Fed governors Waller and Bowman (that inflation is pass-through), the greater the likelihood of a September cut.

And here’s Powell from this morning:

It is a reasonable base case that the effects will be relatively short lived — a one-time shift in the price level.

Now, he did leave himself some wiggle room.

Still speaking on inflation, Powell noted:

We expect those effects [of tariffs on consumer prices] to accumulate over coming months, with high uncertainty about timing and amounts.

The question that matters for monetary policy is whether these price increases are likely to materially raise the risk of an ongoing inflation problem.

But that hedging was offset by an unexpected dovish curveball.

For that, let’s go to legendary investor Louis Navellier from this morning’s Growth Investor Flash Alert:

So, here’s the big surprise – the thing that got everybody all excited.

The Fed Chairman said, “Our policy rate is now 100 basis points closer to neutral than it was a year ago. And the stability of the unemployment rate and other labor market measures allows us to proceed carefully as we consider changes to our policy stance.”

So, not only are they going to cut, they’re probably going to cut four times because they’re 100 basis points above where they should be.

In the futures market, traders are suddenly recalibrating their bets on rate cut timing.

The CME Group’s FedWatch Tool shows that the expectation for a quarter-point cut in September jumped to 91.1% from yesterday’s 75.0% reading.

In the bond market, the 10-year Treasury yield is down more than seven basis points, trading at 4.26% as I write.

And in stocks, all three major indexes are soaring. The Dow is hitting a new all-time high while the S&P and the Nasdaq notch 2% intraday gains. And the rate-sensitive Russell 2000 is up nearly 4%.

Let’s go to Luke’s Daily Notes in Innovation Investor from earlier this week as the markets have been selling off:

The Nasdaq and S&P have both pulled back about 2-3% to their 20-day moving averages. Historically, in this AI bull market, that’s often been where corrections stop.

Sometimes we’ve slipped a bit deeper, down 4–5% to the 50-day or 100-day, but very rarely much worse. This doesn’t smell like one of those rare 10% “200-day” sell-offs.

We are “bottom enough” to start bottom-fishing.

That’s why we’re scanning our Buy Lists and hunting for strong tactical opportunities in AI stocks.

Now, despite Luke’s hunt for new “buys,” his recent bullishness comes with an asterisk:

If the Fed does cut in the next year — and we think they will — that will juice the AI Boom, unleash animal spirits, and fuel more spending, borrowing, and growth.

But pile tariffs and extra stimulus on top, and you could get late-2026 or early-2027 inflation that forces the Fed back into “Volcker mode.”

That would risk ending this AI Boom just as the dot-com boom ended in the early 2000s.

Luke wrote this before Powell’s speech this morning. But in the wake of the Fed Chair’s apparent openness to a September cut – and the market’s buoyant reaction – it rings true.

Here he is to explain:

Eventually AI’s first boom will run into macro headwinds and morph into a bust. But not yet.

Over the next 12 months — and likely longer — the AI train will keep barreling down the tracks.

Better still, Luke believes we’re in a window when AI trading gains can snowball. It’s courtesy of where tech stocks are in their growth cycle: “Stage 2,” which is the accumulation phase of a market framework called “Stage Analysis.”

When high-momentum AI stocks rip higher in Stage 2, the gains can pile up quickly. Luke calls these moments “income events”:

AI is creating the biggest, fastest moves I’ve seen. I call them “AI Income Events” — and most investors miss them.

With these moves, you can pursue income far faster than simple buy-and-hold.

Many of my members are doing exactly that with a system my team built called Nexus, which helps us zero in on when a stock enters Phase 2—the growth phase.

Luke believes his Nexus system can help traders turn $5,000 into $30,000 in just six months. To explain more, he just put together a special free broadcast that goes into far more detail on Nexus – and on how it this strategy beats dividends, bonds, options, or any other “traditional” income strategy by 40X.

We’ll bring you more next week, but to get a jump on the details right now, just click here.

The big box retailer blew past Wall Street’s quarterly sales estimates but missed on earnings – the first time that’s happened since May 2022. However, management raised its full-year earnings and sales outlook.

What conclusions can we draw from the interplay between tariff pricing, earnings, and consumer spending?

In short, tariffs are increasing consumer prices – at least somewhat… they’re impacting profits and consumer behavior – at least somewhat… and yet the U.S. consumer is still hanging in there – once again, at least somewhat.

Digging in, here’s The Wall Street Journal on higher prices and profits:

Of the products Walmart sells in the U.S., about a third come from overseas.

Because of tariffs, the company is raising prices on about 10% of the goods it imports, absorbing the rest of the elevated cost, Walmart Chief Financial Officer John David Rainey said in an interview…

Walmart executives said that as the retailer replenishes inventory at higher tariff levels, its costs will continue to tick up…

Rainey went on to say that “there are certainly areas where we have fully absorbed the impact of higher tariff costs.” He also added that “tariff-impacted costs are continuing to drift upwards.”

And on the earnings call, Walmart CEO Doug McMillon said:

We’ve continued to see our cost increase each week, which we expect will continue into the third and fourth quarters.

Overall, Walmart’s prices rose by an average of about 1% last quarter.

At a high level, “resilient” continues to be the story.

Here’s Rainey:

Everyone is looking to see if there are any creaks in the armor or anything that’s happening with the consumer, but it’s been very consistent.

They continue to be very resilient.

However, when we dig deeper, we see the same through-line we’ve been covering for years: lower-income shoppers are slipping, and buying behavior is changing to reflect higher prices.

Here’s Business Insider:

Some shoppers seem to be feeling the squeeze and either skipping purchases or switching to lower-priced alternatives.

“Not surprisingly, we see more adjustments in middle- and lower-income households than we do with higher income households and discretionary categories,” McMillon said.

McMillion went on to say:

We see a corresponding moderation in units at the item level as customers switch to other items, or in some cases, categories.

So, what’s the takeaway from all this?

Cautious optimism.

Tariffs are raising costs – though only somewhat (so far) …

Those costs are pressuring profits and reshaping consumer choices – though only somewhat…

And the U.S. consumer, despite it all, is still out there opening their wallet – though, once again, only somewhat.

It’s this “somewhat” economy that we’re living in: resilient enough to remain optimistic, fragile enough to remain cautious.

We’ll keep tracking this.

(Disclaimer: I own WMT.)

First, in yesterday’s Digest, we pointed you toward power companies as a way to play AI.

AI requires enormous amounts of energy. Below is a visual on where energy costs are – and the rate at which they’re increasing.

For context, note how prices went nowhere for the decade between 2010 and 2020.

Then, the green circle shows the spike in average price from 2021/2022 due to the conflux of natural gas cost surges, supply-chain issues, extreme weather events, and our bout with inflation.

Meanwhile, the blue circle shows the spike that we can largely attribute to AI and its surging energy demands.

Here’s a reminder from Luke as to where we’re headed with energy demand:

According to new research from Bloomberg, AI data centers could consume 1,600 terawatt-hours of electricity by 2035 – about 4.4% of global electricity.

If they were a country, data centers would rank fourth in electricity use, just behind China, the U.S. and India.

In terms of growth, global data center power demand is expected to quadruple in the next 10 years.

All this means that big AI data center operators will keep buying more and more power from major power suppliers, which investment-wise means that AI power stocks should keep powering higher.

The chart below shows that social benefits in the U.S. now make up 46% of all U.S. government expenditures.

This is only going to get worse as our demographic inversion intensifies.

Though we could draw many conclusions from this chart, we’ll keep it simple…

The purchasing power of our dollars is headed down the toilet. Invest accordingly.

Here’s something to give you the warm-and-fuzzies beyond Powell’s dovish words today.

Historically, periods of elevated monetary policy – where we find ourselves today – have been “buy” signals.

From Charles-Henry Monchau, CIO at Syz Group:

October 1987, the Iraq-Kuwait recession, September 11th, the 2003 “jobless recovery,” Covid lockdowns.

These are times to buy the US stock market, not sell it.

At 358, the MPU index is about as high as ever.

Bullish.

As I write Friday, with both the S&P and Nasdaq up about 2% and the Dow at an all-time-high, “bullish” does appear to be the takeaway.

We’ll keep you updated on all these stories here in the Digest.

Have a good evening,

Jeff Remsburg

The post Powell Hints at a Rate Cut; ���Ҵ�ýs Roar appeared first on InvestorPlace.

Right now, that force is artificial intelligence. It’s moving faster than any tech trend I’ve ever witnessed. And it’s creating what my InvestorPlace colleague Luke Lango calls “AI Income Events” … sudden bursts when investor psychology flips and stocks soar triple digits in weeks, sometimes days.

Luke’s Nexus system is built to capture these events. Unlike most strategies that focus only on fundamentals, Nexus tracks five behavioral signals tied to investor psychology — things like institutional buying, surging volume, and FOMO. That’s how it identifies the exact moment when a stock enters Phase 2 of its growth cycle … and when the biggest gains tend to hit. Luke just held a special briefing to walk through how it works – and I strongly encourage you to watch it here while it’s still available.

And, if you’ve been rattled by this week’s headlines, I encourage you to read his essay below. Then watch his briefing before this narrow opportunity window closes.

Here we are again.

Stocks slid this week, with tech taking most of the hit. On Thursday, the S&P 500 fell for a fifth straight day, and the Nasdaq is down about 2.6% over the last five days.

Headlines screamed… but before you hit the panic button, let’s break down what’s really happening.

This pullback isn’t about one catalyst. It’s a cluster of small ones:

• Investors digesting hot inflation prints.
• Jitters ahead of Fed Chair Jerome Powell’s Jackson Hole speech.
• Weak earnings from Target Corp. (TGT) and Walmart Inc. (WMT) stoking consumer-spending worries.

That’s plenty to weigh on stocks near term, but none of it ends the bull market. They’re distractions.

So let’s zoom out to the one force still powering this market higher.

Then, we’ll zoom in on the system my members use to spot when a stock is about to break out because of this phenomenon.

Plus, I have a challenge for you – one that could put you ahead of 99% of investors…

The Real Driver Since 2022

The setup was ripe for a dip: stocks “priced for perfection,” crowded positioning, and Powell anxiety.

The selloff is a release valve—an overdue reset inside a strong uptrend.

The fundamentals haven’t changed. The economy looks solid, inflation is easing, and rate cuts remain on the horizon.

And the driver since late 2022 hasn’t changed either: artificial intelligence.

AI demand is accelerating, spending is exploding, and profits tied to AI are swelling. For example:

• Big Tech —including Alphabet Inc. (GOOGL), Amazon.com Inc. (AMZN), Microsoft Corp. (MSFT), and Meta Platforms Inc. (META) — are expected to spend a $750 billion on data centers over 2025–2026, with global AI spending projected to hit $3 trillion by 2029.
• This unprecedented AI spending is materially boosting U.S. GDP (adding around 0.7 percentage points), helping to lift stock markets even amid broader economic uncertainty
• Infrastructure AI “enablers” are posting strong second-quarter results and skyrocketing. Shares of Willdan Group Inc. (WLDN), which specializes in energy efficiency for data centers are up 175% year‑to‑date. CBRE Group Inc. (CBRE) and Primoris Services Corp. (PRM) have also reported strength tied to the data-center buildout.

That’s why stocks, as a whole, are up close to 10% this year.

Right now, we’re in between catalysts.

Soon enough, we’ll get the next big jolt —Nvidia Corp. (NVDA) earnings later this month. If history holds, another blockbuster report could reignite AI enthusiasm and put the market back in gear.

So what do we do in the meantime? Look for pullback entries in your favorite AI names — smart for long-term gains.

But AI is also creating the biggest, fastest moves I’ve seen. I call them “AI Income Events” — and most investors miss them.

With these moves, you can pursue income far faster than simple buy-and-hold. Many of my members are doing exactly that with a system my team built called Nexus, which helps us zero in on when a stock enters Phase 2—the growth phase.

Let me tell you about it…

The Moment AI Sparks a Surge

AI Income Events are powerful price surges when a company meaningfully integrates AI.

Recent examples:

• AppLovin Corp. (APP) +500% in five months.
• SoundHound AI Inc. (SOUN) +300% in three months.
• Palantir Technologies Inc. (PLTR) +290% in five months.
• Super Micro Computer Inc. (SMCI) +233% in just two months.
• BigBear.ai Holdings Inc. (BBAI) +100% in weeks.

AI isn’t just another tool—it’s a multiplier,

It boosts efficiency, decision-making, marketing, product development, customer engagement—everything. Companies that adopt AI don’t inch forward – they leap.

On Wall Street, that shows up as sudden bursts of hypergrowth. That’s Phase 2.

Phase 1 is build-and-experiment. Phase 2 is when AI drives results — and where the biggest gains tend to happen.

AI itself is in Phase 2 now, so this window won’t stay wide open forever. The easy triple-digit runs will get rarer within a year.

That’s why I built Nexus, a proprietary behavioral-analytics system that spots when a stock is about to enter Phase 2. It cuts through hype to flag real-time breakouts across sectors (especially AI Income Events).

When Nexus lights up, behavior is shifting: Traders pile in, institutions move money, and Wall Street wakes up. If you’re positioned, you can ride the wave — potentially to 200%, 300%, even 400%+ gains.

Volatility isn’t a threat. With the right system, it’s your edge.

Which brings me to my challenge…

My Challenge to You

The challenge is simple: Generate $30,000 in the next six months by targeting AI Income Events?

Over the next six months, I want you to see how AI Income Events can transform your portfolio. Using my Nexus system, you’ll get alerts on exactly which stocks are entering Phase 2 and when to act.

With Nexus, you can participate in the most powerful technological revolution of our lifetimes – and capturing the wealth creation that comes with it.

Pullbacks like the one we’re seeing now aren’t threats… they’re invitations. They shake out the weak hands and prepare the ground for the next big move.

The only question is: Will you be ready?

I just put together a special free broadcast going into far more detail on Nexus – and on how it this strategy beats dividends, bonds, options, or any other “traditional” income strategy by 40X.

Click here to join me in the AI Income Challenge and start targeting your first $30,000 in cash.

Sincerely,

Luke Lango

Editor, Hypergrowth Investing

The post Why This Week’s ���Ҵ�ý Jitters Don’t Change What’s Next appeared first on InvestorPlace.

In this week’s episode of Being Exponential, we discuss many different sectors of the economy – from housing to healthcare, robotics, and the next frontier: space – and which stocks we think have the most potential in those industries.

Watch the latest episode by clicking the video below:

Want a primer for what’s in store? What follows is complementary to today’s podcast, giving you the opportunity to dig deeper into the topics in play…

The Next GameStop?

Opendoor (OPEN) – meme stock or 100-bagger? Over the past few weeks, OPEN has rallied strongly. It’s up nearly 100% just in the past 15 days. But this exciting performance begs the question: are we looking at another GameStop (GME) here?

We don’t think so.

GME’s rise was fast and furious – and helped GameStop achieve a significantly higher valuation that still holds today. And this for a company that’s decent at best. In our opinion, the story is much different for Opendoor.

OPEN’s business model holds immense value potential; but the iBuyer was always destined to struggle in a down housing market. (Its latest earnings were ugly, weren’t they?) Yet, for us, this wasn’t part of the bull thesis. Instead, we saw the potential for Opendoor to be an AI-powered market maker in the housing sector – providing liquidity by using its powerful algorithms to match home buyers with sellers, all without having to include home assets on its balance sheet. 

Retail buyers feel the same way; and after OPEN’s recent rally, management is finally listening…

Is Unity Software a Sleeper AI Play?

Remember back in 2020 and ’21, when Zuckerberg rebranded Facebook as Meta (META), and a lot of folks thought the metaverse was the next big thing? Unity (U) soared on all that hype because, essentially, it provides the gaming engine that can create those worlds. The stock was tossed in the ‘metaverse’ bucket; and as that hype faded, so did Unity’s rally – to say the least…

But we think Unity is actually an AI play; and Wall Street is starting to realize it. 

It’s becoming clear to us that the future of consumer technology lies at the intersection of the physical and the digital – moving away from smartphones and touch screens and toward things like smart glasses and other AI-driven AR/VR. If that truly is our future, Unity could easily become the operating system for physical AI devices. And it’ll be kicking butt and taking names.

Hesai: Leading Supplier for the Autonomous Revolution

The big story here? Until recently, Hesai‘s (HSAI) rise was a China-only story. But after the company secured a lidar deal with Toyota (TM) – a non-Chinese OEM – that’s no longer the case.

Hesai is part of the global autonomous landscape now; and we think it’s positioned for long-term gains. It’s not too technically extended at the moment, with a relative strength index of about 63, as of this writing. Plus, as a massive potential grower, its valuation is still quite attractive. It’s trading at 47X forward earnings and 5X forward revenue – in our view, pretty cheap multiples for a firm with such huge growth prospects. 

Expect HSAI to keep moving higher.

Warren Buffett Leads the ‘Smart Money’ Charge

Just a few days ago, Warren Buffett purchased $1.6 billion worth of shares in UnitedHealth (UNH), and that has proven a huge tailwind for the company. This “smart money” move has investors shifting their gaze to the beaten-down healthcare industry.

We’ve talked about this sector before; most recently in an issue of our Hypergrowth Investing eletter. And in short, we think this is a “buy the dip” moment for healthcare stocks. 

But when it comes to finding the stocks in this space that are most poised for gains, we definitely have favorites…

Apple: Hardware, Robotics, and a Tech Titan’s Vision

Another ‘sleeper’ in the AI space? Apple (AAPL).

So far, the tech titan hasn’t made much visible headway in the industry. (Apple Intelligence has been a flop.) But we see an acquisition in the cards here – potentially a robotics maker.

Throughout its history, Apple has dominated in physical consumer technology as a hardware heavy-hitter. After its Apple Intelligence miss, it’s likely shifting focus to where its strengths lie; and robotics would be the natural route to take. 

Plus, with its announcement of Liquid Glass for macOS and iOS, we have a sneaking suspicion that Apple sees the same tech future that we do.

The Final Word

Some of our takes this week might seem a bit outlandish at first. 

The death of the smartphone, holographic interfaces, AI-driven augmented reality; it all sounds exceptionally sci-fi.

But right now, sci-fi is increasingly becoming reality. We’re witnessing the rise of humanoid robots, self-driving cars, wearable smart tech, commercialized space travel, regenerative medicine… 

And in large part, it’s due to AI.

Though, this technology isn’t just powering the futuristic ideas we’ve been talking about; it’s also rewriting the rules of the stock market in real time. 

With AI adoption happening faster than any tech shift in history, entire industries are transforming almost overnight – and creating what we call “AI Income Events”: the exact moment when investor psychology flips from doubt to urgency, igniting sharp, rapid gains.

Our Breakout Trader system is designed to capture these events systematically, using behavioral analytics to track the telltale signs of excitement, accumulation, and impatience. This data-informed, repeatable approach was built to help everyday investors harvest AI-driven breakouts during a narrow window of mass psychological adoption.

Learn how to turn a $5,000 stake into $30,000 – within six months – by capitalizing on these AI Income Events.

And for this week’s full conversation, click here to watch the latest episode of Being Exponential…

Then hit subscribe: this market rewards those who stay current.

The post Being Exponential: Where Futuristic Tech Meets Today’s Biggest AI Trades appeared first on InvestorPlace.

Yes, stocks have been sliding. The Nasdaq is down 2.6% over five days, and headlines are screaming doom. But here’s what they’re missing: the AI revolution is just hitting its stride.

We’re not talking about the early experimental phase anymore. We’ve entered what our experts call “Phase 2” – where AI stops being a cool concept and starts driving real business results.

The time for investors to act is now.

That’s why I’m excited to share this special analysis from my colleague Luke Lango. He’s identified what he calls “AI Income Events” – powerful price surges that occur when companies successfully harness AI’s multiplier effect.

The essay below breaks down exactly how this system works and why current market volatility is actually creating the perfect setup for the next wave of AI Income Events.

I encourage you to read it in full. Once you have, you can learn more about the AI Income Challenge right here.

Here we are again.

Stocks slid this week, with tech taking most of the hit. On Thursday, the S&P 500 fell for a fifth straight day, and the Nasdaq is down about 2.6% over the last five days. UPDATE AS NEEDED

Headlines screamed… but before you hit the panic button, let’s break down what’s really happening.

This pullback isn’t about one catalyst. It’s a cluster of small ones:

• Investors digesting hot inflation prints.
• Jitters ahead of Fed Chair Jerome Powell’s Jackson Hole speech.
• Weak earnings from Target Corp. (TGT) and Walmart Inc. (WMT) stoking consumer-spending worries.

That’s plenty to weigh on stocks near term, but none of it ends the bull market. They’re distractions.

So let’s zoom out to the one force still powering this market higher.

Then, we’ll zoom in on the system my members use to spot when a stock is about to break out because of this phenomenon.

Plus, I have a challenge for you – one that could put you ahead of 99% of investors…

The Real Driver Since 2022

The setup was ripe for a dip: stocks “priced for perfection,” crowded positioning, and Powell anxiety.

The selloff is a release valve—an overdue reset inside a strong uptrend.

The fundamentals haven’t changed. The economy looks solid, inflation is easing, and rate cuts remain on the horizon.

And the driver since late 2022 hasn’t changed either: artificial intelligence.

AI demand is accelerating, spending is exploding, and profits tied to AI are swelling. For example:

• Big Tech —including Alphabet Inc. (GOOGL), Amazon.com Inc. (AMZN), Microsoft Corp. (MSFT), and Meta Platforms Inc. (META) — are expected to spend a $750 billion on data centers over 2025–2026, with global AI spending projected to hit $3 trillion by 2029.
• This unprecedented AI spending is materially boosting U.S. GDP (adding around 0.7 percentage points), helping to lift stock markets even amid broader economic uncertainty
• Infrastructure AI “enablers” are posting strong second-quarter results and skyrocketing. Shares of Willdan Group Inc. (WLDN), which specializes in energy efficiency for data centers are up 175% year‑to‑date. CBRE Group Inc. (CBRE) and Primoris Services Corp. (PRM) have also reported strength tied to the data-center buildout.

That’s why stocks, as a whole, are up close to 10% this year.

Right now, we’re in between catalysts.

Soon enough, we’ll get the next big jolt —Nvidia Corp. (NVDA) earnings later this month. If history holds, another blockbuster report could reignite AI enthusiasm and put the market back in gear.

So what do we do in the meantime? Look for pullback entries in your favorite AI names — smart for long-term gains.

But AI is also creating the biggest, fastest moves I’ve seen. I call them “AI Income Events” — and most investors miss them.

With these moves, you can pursue income far faster than simple buy-and-hold. Many of my members are doing exactly that with a system my team built called Nexus, which helps us zero in on when a stock enters Phase 2—the growth phase.

Let me tell you about it…

The Moment AI Sparks a Surge

AI Income Events are powerful price surges when a company meaningfully integrates AI.

Recent examples:

• AppLovin Corp. (APP) +500% in five months.
• SoundHound AI Inc. (SOUN) +300% in three months.
• Palantir Technologies Inc. (PLTR) +290% in five months.
• Super Micro Computer Inc. (SMCI) +233% in just two months.
• BigBear.ai Holdings Inc. (BBAI) +100% in weeks.

AI isn’t just the latest buzzword in a long line of overhyped, ho-hum tech tools — it’s a true productivity multiplier.

It boosts efficiency, decision-making, marketing, product development, customer engagement — accelerating everything it touches. Companies that adopt AI don’t inch forward with incremental improvements – they improve by leaps and bounds.

On Wall Street, that shows up as sudden bursts of hypergrowth. That’s Phase 2.

Phase 1 is build-and-experiment. Phase 2 is when AI drives results — and where the biggest gains tend to happen.

AI itself is in Phase 2 now, so this window won’t stay wide open forever. The easy triple-digit runs will get rarer within a year.

That’s why I built Nexus, a proprietary behavioral-analytics system that spots when a stock is about to enter Phase 2. It cuts through hype to flag real-time breakouts across sectors (especially AI Income Events).

When Nexus lights up, behavior is shifting: Traders pile in, institutions move money, and Wall Street wakes up. If you’re positioned, you can ride the wave — potentially to 200%, 300%, even 400%+ gains.

Volatility isn’t a threat. With the right system, it’s your edge.

Which brings me to my challenge…

My Challenge to You

The challenge is simple: Generate $30,000 in the next six months by targeting AI Income Events?

Over the next six months, I want you to see how AI Income Events can transform your portfolio. Using my Nexus system, you’ll get alerts on exactly which stocks are entering Phase 2 and when to act.

With Nexus, you can participate in the most powerful technological revolution of our lifetimes – and capturing the wealth creation that comes with it.

Pullbacks like the one we’re seeing now aren’t threats… they’re invitations. They shake out the weak hands and prepare the ground for the next big move.

The only question is: Will you be ready?

I just put together a special free broadcast going into far more detail on Nexus – and on how it this strategy beats dividends, bonds, options, or any other “traditional” income strategy by 40X.

Click here to join me in the AI Income Challenge and start targeting your first $30,000 in cash.

Luke Lango

Editor, Hypergrowth Investing

The post The Dip Before the Next AI Boom appeared first on InvestorPlace.

This week is bringing a sea of red for many investor portfolios – especially from tech stocks.

AI momentum plays including Nvidia, AMD, and Palantir have been sliding as investors question whether tech valuations have run too far, too fast.

Meanwhile, Home Depot, United Health, and other select value stocks have jumped in the last few days on strong earnings and more attractive valuations.

What are we to make of this rotation? Do momentum/tech investors need to be worried?

Let’s begin with legendary investor Louis Navellier. From his recent Flash Alert in Growth Investor:

We have a bit of a market rotation underway.

This rotation out of the leaders into new stocks that are lagging is perfectly normal. That’s a good sign that money is just being reshuffled in the market, and that’s fine.

Our technology expert Luke Lango is similarly unphased.

From his Daily Notes in Innovation Investor:

Wall Street finally let out a sigh—along with a wave of selling pressure.

Inflation, rate, and growth concerns that had been simmering finally spilled into the market. Think of the past few sessions as static buildup: flat action, jittery headlines, no spark. [This week], the spark arrived.

And you know what? That’s fine.

The market needed a release valve.

Many are using tomorrow’s Jackson Hole Symposium – and the risk that Fed Chair Jerome Powell says something that roils the market – as an excuse to take profits/rebalance.

Plus, as we detailed in the Digest, August/September is usually a seasonally weak time of year. The S&P’s strong August performance through last Wednesday is the anomaly – not this recent selloff.

That’s, in part, why Luke urges investors to maintain perspective:

The market is pausing, not breaking.

Technicals suggest stocks will bottom soon. A dip in the S&P 500 and Nasdaq to their 50-day moving averages—roughly 3% lower—would fully reset conditions.

Luke is calling for sideways chop over the next one to two weeks before stocks “blast higher” in September.

After all, as I noted a moment ago, August and September are usually weak months.

The answer?

Nvidia.

Back to Luke:

We just need one big AI-related catalyst to recharge the bullish narrative and resume this record rally.

We’ll get that at the end of the month with Nvidia’s earnings report.

Given the massive AI infrastructure spending boom still roaring ahead, we think Nvidia is set to deliver blockbuster numbers at month’s end.

That report could do two things at once: 1) remind everyone the AI Boom is very much alive and well, and 2) drown out macro fears with growth so strong it’s impossible to ignore.

Louis is equally bullish on Nvidia’s upcoming earnings. He says that if you’ve been looking to get into the chip giant, this is a good time:

NVIDIA is under siege with some profit-taking. Don’t worry about it – there’s nothing wrong with NVIDIA.

If you want to buy more, [this week has been a good time] to do it.

Pulling it all together, here’s Luke’s short-term roadmap:

This is the digestion phase before the next leg up.

Use it to position smartly — both trimming dead weight and leaning into your highest-conviction AI winners.

Here in August, there have been a handful of stories you might have missed…

In Canada’s House of Commons, hackers slipped through a hole in Microsoft’s widely used SharePoint software – basically the tool government staff rely on to share files and collaborate.

Once inside, they pulled staff names, emails, job titles, and even details about the devices people were using. Ottawa scrambled to contain the fallout.

In Washington, the U.S. federal court system was blindsided when attackers dug into filing systems, walking away with sealed legal documents. Some reports suggest this may have exposed the identities of confidential informants and sensitive indictments.

And over in France, telecom giant Bouygues admitted that hackers stole the personal details of 6.4 million customers – everything from addresses to bank account numbers.

Welcome to the age of high-tech hacking.

Let’s return to Luke:

For years, hackers worked like artisanal thieves: crafting code, testing exploits, iterating until they found a way in. Painstaking work. 

But now they’ve got AI-powered battering rams.

Large language models can generate malware in seconds. Automated reconnaissance tools can scan the digital universe for vulnerabilities faster than human security teams can even pour a cup of coffee. Once-humorous phishing emails now read like they really were written by your boss, complete with tone, phrasing, and context.

In short, hackers have leveled up. And they’ve done it with the exact same technology Wall Street is drooling over: AI.

Palo Alto Networks (PANW) delivered blockbuster earnings results earlier this week.

Annual recurring revenue blew past expectations. Profits popped. Management’s guidance for next year was stronger than the Street anticipated. And the stock shot higher in after-hours trading.

But Luke writes that PANW won’t be hogging all the investment gains. Cybersecurity is entering its AI supercycle – presenting one of the most compelling multi-year growth opportunities on Wall Street:

This is a rising tide story. Investors don’t have to pick just one winner.

Enter Palo Alto, CrowdStrike (CRWD), Fortinet (FTNT), Zscaler (ZS), SentinelOne (S), and the rest of the cyber elite.

Gone are the days of traditional firewalls. These security titans are building autonomous, AI-native defense platforms that can anticipate, detect, and neutralize attacks at blazing speeds.

But there’s another major reason why cybersecurity stocks deserve a place in your portfolio.

AI is eating itself.

Companies that looked like innovators just a couple of years ago are already being commoditized by newer AI tools.

For example, in yesterday’s Digest, we highlighted how Luke just sold GoDaddy (GDDY) in his Innovation Investor service. This once-shiny web-building service with its self-proclaimed “revolutionary AI Website Builder” tool looks increasingly unnecessary now that ChatGPT can spin up a site within minutes.

Investors must be aware of this evolution or else find themselves with a basket of yesterday’s tech leaders that are slipping into irrelevance.

Here’s Luke:

Even within the AI economy, a fresh bifurcation is emerging…

Former high-flying AI stocks are slipping. The disruptors are being disrupted. That’s how fast AI is evolving.

Unlike website builders, password managers, or generic SaaS tools, security doesn’t become obsolete just because the technology landscape shifts. If anything, it becomes more essential as AI tools grow more powerful.

Sure, AI can automate creative work, but it also supercharges cybercrime. Hackers are using generative AI to write malware, tailor phishing emails, and scan for vulnerabilities at a speed no human team could match.

Companies, governments, and individuals need stronger defenses. And that gives leading players like Palo Alto Networks insulation from AI disruption.

Bottom line: The same AI technology that’s eating yesterday’s tech is feeding tomorrow’s cyber threats. So, while other tech categories are being commoditized, security is non-optional.

Here’s Luke’s take:

As long as data exists – and hackers are around to steal it – this sector’s surge has no end date.

We recommend you use Luke’s earlier list of cybersecurity plays as a starting point for your own research. And to learn which stocks he’s officially recommending in Innovation Investor, click here to learn more about joining him.

Earlier this week, we featured recent comments from OpenAI Chief Executive Officer Sam Altman:

You should expect OpenAI to spend trillions of dollars [on data center construction in the] not very distant future.

To be clear, that’s “trillions” plural, not just “a trillion.”

We don’t know exactly how much power AI will require, but we feel confident answering “more – lots more.”

And that creates a layer of insulation for the companies powering AI’s growth.

Here’s Luke with some data:

According to new research from Bloomberg, AI data centers could consume 1,600 terawatt-hours of electricity by 2035 – about 4.4% of global electricity.

If they were a country, data centers would rank fourth in electricity use, just behind China, the U.S. and India.

In terms of growth, global data center power demand is expected to quadruple in the next 10 years.

All this means that big AI data center operators will keep buying more and more power from major power suppliers, which investment-wise means that AI power stocks should keep powering higher.

For a few ideas on how to play this, consider:

• Vistra Corp (VST) – It’s one of the largest U.S. power producers, with a strong footprint in natural gas and growing renewable generation, making it a direct supplier to the data centers that need constant, reliable electricity
• NextEra Energy (NEE) – It’s a leader in renewables and battery storage, positioned to provide the clean energy that hyperscale data centers need
• Constellation Energy (CEG) – It’s the biggest U.S. nuclear power operator, offering round-the-clock baseload power, exactly what AI data centers demand

But make sure to check their valuations. A great deal of anticipated growth is already priced in, potentially limiting upside if growth doesn’t meet projections.

Once again, for Luke’s favorite ways to play this in Innovation Investor, click here to learn more about joining him.

Tomorrow morning at 10:00 a.m. Eastern, Federal Reserve Chairman Jerome Powell takes the stage at the Jackson Hole Symposium to deliver a speech called “Economic Outlook and Framework Review.”

Wall Street will be listening intently for clues about interest rate policy – specifically, a cut in September.

A couple weeks ago, traders put 100% odds on at least a quarter-point cut. But as I write Thursday morning, that probability has slipped to 73%.

If you listen to Kansas City Federal Reserve President Jeffrey Schmid, those odds should be even lower.

From CNBC this morning:

Schmid expressed doubt about lowering interest rates in September, saying policymakers still have more work to do on inflation.

Speaking to CNBC from the Fed’s annual symposium in Jackson Hole, Wyo., Schmid pushed back on market pricing that points strongly to the Federal Open ���Ҵ�ý Committee lowering its key borrowing rate next month.

“We’re in a really good spot, and I think we really have to have very definitive data to be moving that policy rate right now,” he said 

If Powell echoes this sentiment tomorrow, then – coming full circle to the top of today’s Digest – this week’s “sea of red” will likely get even redder.

We’ll update you tomorrow.

Have a good evening,

Jeff Remsburg

The post How to Understand the ���Ҵ�ý’s Lousy Week appeared first on InvestorPlace.

Ever since the initial fears surrounding President Trump’s April 2 tariff announcement began to subside, it has been off to the races.

As of this writing, the NASDAQ has soared 38%, the S&P 500 is up 28%, the Russell 2000 has gained 29% and the Dow has risen 19%.

As a result, the stock market is now on the verge of five straight months of gains. That’s unprecedented, folks.

Normally, the stock market would back and fill a bit after such an impressive run. But it hasn’t yet.

It’s especially puzzling since we’re in the middle of August – one of the weakest periods of the year, from a seasonal perspective.

September is historically a weak month for the market, too. So, stocks could take a breather then. But, as I mentioned in Tuesday’s ���Ҵ�ý 360, if the Federal Reserve cuts key interest rates as expected, all bets are off.

So, yes, this “melt-up” isn’t normal. But the reality is there are several reasons to remain optimistic for the rest of the year.

That’s because the U.S. is about to shift gears and enter a period that I like to call “economic nirvana.”

So, in today’s ���Ҵ�ý 360, I’ll give four reasons explaining why the conditions are ripe for a period of incredible growth. Then, I’ll tell you about one of the best ways to profit…

Reason No. 1: Renewed Optimism

First, there is renewed optimism after President Trump secured new trade deals.

Many of the U.S.’s trading partners, including Japan, Indonesia, the Philippines, South Korea and the European Union, secured trade deals ahead of the Trump administration’s latest deadline.

China, Mexico and Canada are still expected to negotiate new U.S. tariffs. President Trump gave Mexico a 90-day extension to allow more time for negotiations, and there has been some progress on the rare earth discussions with China.

Recently, Trump gave another 90-day pause on higher tariffs on Chinese goods that will go into early November.

Bottom line, tariff uncertainty is diminishing, and folks can begin to cheer up.

Reason No. 2: Moderating Inflation

The second reason is that inflation is moderating. Despite persistent attempts to derail the Trump administration’s economic agenda, economic growth without inflation is fully anticipated.

There are a few reasons why I don’t expect inflation to materialize:

• An improving U.S. dollar
• Widespread deflation in China
• Lower energy prices from “drill, baby, drill”
• Imports only account for 14% of inflation calculations

Prior to last week’s reports, inflation had come in below economists’ expectations for the past five months. But in my opinion, it didn’t actually reveal many recurring inflation concerns. (For my full thoughts, check out my in-depth report here.)

So, because of the four aforementioned factors, as well as artificial intelligence and productivity, inflation will be suppressed.

Reason No. 3: An Accommodative Central Bank

Personally, I was disappointed that the Fed didn’t cut key interest rates at the July Federal Open ���Ҵ�ý Committee (FOMC) meeting.

In the wake of the meeting, Fed Chair Jerome Powell said the slowdown in growth “largely reflects a slowdown in consumer spending.” That was the only dovish statement. So, expectations for a September rate cut remain high, but it is not yet certain.

Recent developments signal that it is growing more likely – like the fact that the Labor Department cannot effectively count payroll jobs. The May and June payrolls were revised lower by a cumulative 258,000. This is not the first time this has happened, but it is the biggest one I can remember in a while. So, clearly, the seasonal adjustments that the Labor Department likes to use are outdated.

What’s more, officials such as Minneapolis Fed President Neel Kashkari have said the data in hand clearly shows the economy is slowing, and that it may be appropriate to start adjusting the federal funds rate.

As a result, there is a growing number of Fed officials who want to see a rate cut.

You may recall that both Christopher Waller and Michelle Bowman voted against holding rates steady. Also, Fed Governor Adriana Kugler didn’t attend the FOMC meeting due to a personal matter, and she has since announced her resignation. President Trump selected Stephen Miran, Chairman of the Council of Economic Advisers, to replace Kugler’s vacated seat, which makes up our third official.

I should add that Treasury yields have declined lately, so falling market rates will also continue to pressure the Fed to cut.

Reason No. 4: Lower Trade Deficit Boosting Economic Growth

Despite all the fears surrounding the Trump 2.0 tariffs, it’s becoming clear that a lower trade deficit is boosting U.S. economic growth.

The Commerce Department recently announced that the U.S. trade deficit came in at $60.2 billion, which was better than economists’ estimate of $62.6 billion and substantially lower than May’s trade deficit of $71.7 billion. Imports plunged 3.7% to $337.5 billion in June, while exports declined by 0.5% to $277.3 billion.

Just so you can see how erratic imports to the U.S. have been, just look at the chart below:

The fact is, the inventory glut from the first quarter persists, so it’s imperative that tariffs be finalized and stop distorting GDP calculations.

I should also add that the onshoring that President Trump is pushing in the tariff negotiations is anticipated to bring $10 trillion to the U.S. Most of this onshoring is tied to automotive suppliers/manufacturing, semiconductors and drug manufacturing.

As a result, 5% annual GDP growth is very possible in the upcoming years.

What It Means for the ���Ҵ�ý

Here’s the bottom line: The past four months have not been a fluke. 

I want you to pinch yourself, because this is real.

In fact, it is very possible that we are entering a period of “economic nirvana” – where all of the conditions align to create a period of incredible growth. 

Like I said, we could even see 5% GDP growth – not for a long time, but it is possible.

And before you laugh at the possibility, I’ve got two words for you: peace dividend.

You may recall what happened after World War II ended. It was a time of unprecedented growth and prosperity.

Or more recently, in the 1990s, after the end of the Cold War. All of a sudden, the world breathed a huge sigh of relief, giving the market a major boost and an even bigger rise in sentiment – not to mention the Internet boom.

If the ongoing war between Russia and Ukraine can be brought to an end, that would be a huge step toward creating a peace dividend. 

We already know that the Trump administration has facilitated a renewed dialogue between the two countries. Frankly, the speed at which this is happening is a little surprising.

But if this can be pulled off, then a peace dividend may very well be possible.

It’s hard to overstate how big of a deal this would be. And it would provide a major boost to the market.

How to Profit From the Growth Ahead

If you think back to the 90s, you may recall that it was a period of incredible innovation and optimism – not to mention profits for investors.

But here’s the thing…

History shows that every major tech revolution generates at least three times more value than its predecessor, a phenomenon called the Tech Rule of Three.

• The personal computer era marked the first big leap…
• The internet followed, producing over 3.5X the value of PCs…
• Mobile than tripled the internet’s gains….
• Cloud computing tripled mobile’s….

If you think about it, it makes perfect sense. That’s just how innovation works – it builds on what came before, and it compounds progress into a shorter and shorter timeframe.

That’s where we’re at today with artificial intelligence. AI can be used to enhance older technologies such as cars (self-driving vehicles), PCs (AI PCs) and smartphones (personal assistants).

But that’s just the beginning. Because Phase 2 of the AI Revolution will be all about Physical AI. This is where AI steps out of its virtual world and into the real one.

We’re talking about humanoid robots, automated factories, self-driving cars and more.

And if we learned anything from AI, the speed of its development will come in the blink of an eye.

That’s why I sat down with my InvestorPlace colleagues Eric Fry and Luke Lango in an exclusive briefing.

Simply put, we think physical AI could spark an economic wave beyond epic proportions. And we want you to be one of the first to know about it before everyone else and give you the keys to profit from it. (We even reveal a free stock pick just for watching.)

Click here to watch now.

Sincerely,

Louis Navellier

Editor, ���Ҵ�ý 360

The post 4 Reasons We’re Entering “Economic Nirvana” appeared first on InvestorPlace.

Meta Platforms Inc. (META) just froze hiring for its new artificial intelligence division, sending shock waves through the AI space.

This halt comes after the tech giant’s costly hiring spree this summer, where it scooped up prized researchers like Alexandr Wang, the former CEO of Scale AI… Nat Friedman, the former CEO of GitHub… and Ruoming Pang, the former head of AI models for Apple Inc. (AAPL).

These big names are a part of Meta’s Superintelligence Labs, its new AI division. But now it seems that the poaching has stalled.

The company says the pause is due to “basic organizational planning,” which follows its Tuesday announcement that it is splitting up the Superintelligence Labs into multiple departments.

This hiring freeze and double-reorganization comes amid Meta’s, frankly, out-of-control AI spending this year. (Some of those aforementioned researchers’ signing bonuses reached $100 million or more.)

As I mentioned in yesterday’s Smart Money, we need to view every new investment opportunity through the lens of artificial intelligence. And one way we do that is by focusing only on companies that apply AI in cost-effective and/or market-leading ways.

Meta fails in that regard, quite spectacularly.

But the big spender is still a major AI player and a well-known name. Therefore, it most likely is in many investors’ portfolios.

While many investors will try to capitalize on AI by rushing toward the hottest, hyped-up AI plays – like Meta – it’s easy to get burned.

Instead, I recommend looking for the best-of-breed companies that fall into four distinct AI investment categories. I shared the first two groups yesterday.

Today, I’ll share the other two distinct AI investment categories… along with a company that I recommend for each.

Let’s dive in…

Category 3: Investing in AI Survivors

AI is not a death sentence for every company on the planet. Some companies provide a product or service that is resilient to AI disruption, at least for now. These “future-proof” enterprises produce goods and services that AI cannot replicate or replace.

Examples would include companies that operate in major industries like…

• Agriculture
• Energy in its various forms
• Mining
• Hospitality and travel

Some companies also possess a future-proof quality because they provide “affordable luxuries” like farm-to-table foodstuffs, artisanal home goods, premium coffees, or high-end spirits.

Although silicon chips, supercomputers, and data center clusters will breathe life into the AI age, they will not define it. The “premiumization” of innately human elements might.

Dutch Bros Inc. (BROS) belongs firmly in the AI Survivor category.

While Dutch Bros may leverage AI tools for operational efficiency, its product – coffee served with human connection – is fundamentally AI-proof.

Dutch Bros is a rapidly growing drive-thru coffee chain that’s building a fiercely loyal fanbase across America.

The Oregon-based company isn’t selling just coffee and energy drinks – it’s selling human connections. Dutch Bros baristas are trained to deliver a friendly, personal, upbeat “vibe” that forms an emotional bond with customers, especially among millennials and Gen Z.

You can’t automate that kind of empathetic, unscripted interaction.

No AI chatbot or robotic arm can replicate the charm of a barista remembering your drink, joking with you at the window, or brightening your day with a quick conversation. The coffee is the medium, but the experience is the product, which is why customers become so loyal to the brand.

That said, AI will increasingly support the company’s operational processes like inventory management, staffing, site selection, and mobile app performance. But these enhancements are not visible to the customer and do not change the fundamental value proposition.

Just as coffee survived the internet age intact, it will survive the AI age – possibly even thrive as humans seek real-world connections in a digital-first world.

Category 4: Investing in Stealth AI

Stealth AI companies – you can also call them “AI Appliers” – are quietly adopting AI technologies to boost efficiency, productivity, and profitability. These companies may not scream “technology,” but they could profit enormously as they deploy AI technologies throughout their operations.

Many of the companies in this category may appear old-school or even “boring,” but their ability to integrate AI into existing business models could help them scale revenues and profit margins significantly.

Take retail, for example.

Like I said a little bit further up, Dutch Bros qualifies here.

But I also have my eye on the “Amazon of South Korea.”

It is revolutionizing e-commerce in the country. Its core business delivers 99% of its orders within 24 hours. 

This company is developing and testing ways to enhance its businesses with AI and other machine learning (ML) technologies. Some AI-related focus areas include…

• Personalized product search and recommendations
• Fulfillment center automation and optimization
• Workflow management
• Cloud computing and AI infrastructure

It is also developing technologies to enhance various aspects of its e-commerce and logistics operations (and patenting them in order to lock in their value). The number of this company’s global patents have tripled to over 2,100 in the last four years.

This year, Fast Company named the company one of the World’s Most Innovative Companies for harnessing “the power of artificial intelligence (AI), robotics and automation to create the future of global commerce.”

You can learn all of the details about this stealth AI play – ticker symbol and all – here.

Regards,

Eric Fry

Editor, Smart Money

The post One Adopts AI, One Survives It – 2 AI Plays to Buy Now appeared first on InvestorPlace.

As more and more borrowers began defaulting on their mortgages, the housing bubble began to burst. Banks were imploding, with many of their stocks cratering 80%-plus. Lehman collapsed and filed for bankruptcy. Citigroup (C) looked like it was going to zero. Bank of America (BAC) was scrambling to absorb Merrill Lynch while propped up by federal bailout funds. And the public’s faith in the entire financial system had evaporated. 

The big fear was that the world’s financial arteries had clogged, and no amount of Wall Street stents could keep the system alive.

But then those same “dead” bank stocks staged one of the greatest comebacks of all time. 

The U.S. government backstopped the system with the Emergency Economic Stabilization Act of 2008, bailing out Goldman Sachs (GS), JPMorgan Chase (JPM), Morgan Stanley (MS), and Wells Fargo (WFC), among others. 

Soon enough, earnings rebounded, dividends were reinstated, and shares went on a multi-year tear. Buying banks post-crisis became a career-defining trade.

For investors bold enough to look past the panic, banks offered life-changing returns. Today, some of those same investors are eyeing healthcare: a sector under pressure – but one that may be setting up for its own rebound story…

The Great Healthcare Selloff

Three giants – Novo Nordisk (NVO), Eli Lilly (LLY), and UnitedHealth Group (UNH) – are at the center of the storm.

These aren’t speculative biotechs or obscure insurers. They are the blue chips of global healthcare, each worth hundreds of billions – the kind of stocks investors usually buy to sleep better at night. 

And yet they’ve been anything but sleepy lately:

• Novo Nordisk, once a European crown jewel and the face of the obesity-drug revolution, recently lost nearly a third of its value as investors panicked over slowing sales of Ozempic and Wegovy, cheaper compounded competitors, and political pressure on drug pricing. $90-plus billion in market cap was vaporized.
• Eli Lilly, the other half of the weight-loss duopoly, tumbled hard after trial results for its oral obesity pill underwhelmed – despite beating earnings and raising guidance. Investors had priced in perfection, and when perfection didn’t arrive, the stock fell double digits.
• UnitedHealth Group, the fortress insurer that seemed immune to everything from pandemics to recessions, has also suddenly cracked. A cocktail of surging medical costs, federal scrutiny, and operational missteps drove the stock down more than 40%: its worst performance since the 2008 crisis.

These are three of the 10 largest healthcare companies in the world. If they can crack, no stock in the sector feels safe.

Déjà Vu: What Banks Taught Us About Panic and Recovery

These comparisons to the great financial crisis aren’t just lazy metaphor. The rhyme is real.

In 2008, toxic mortgage securities shattered confidence. The Fed was behind the curve. Banks looked untrustworthy. The whole system seemed broken.

Today, the same fear is spreading in healthcare. If Novo and Lilly can’t deliver blockbuster growth on obesity drugs, what’s left? If UnitedHealth can’t manage medical costs, what insurer can? If politicians are lining up to slash prices, can anyone in the industry escape margin compression?

The result is the same: panic, capitulation, and the sense that a ‘golden age’ is over.

But in 2008, that consensus was dead wrong. And in 2025, it could be dead wrong again.

The Bull Case for Beaten-Down Healthcare Stocks

First, structural demand hasn’t gone anywhere. 

Time marches on. People around the world will continue to age and get sick, and chronic disease doesn’t take holidays. The healthcare system is one of the few sectors guaranteed long-term demand growth, no matter the election cycle or economic conditions.

Second, the obesity drug story is far from over. 

Yes, Novo and Lilly stumbled. But they still control two of the most successful drug franchises in history. Wegovy, Ozempic, Mounjaro, Zepbound – these names have already reshaped global medicine. Future indications (liver disease, cardiovascular protection, sleep apnea) could multiply their market reach. One disappointing pill trial doesn’t negate an entire franchise.

Third, UnitedHealth isn’t Lehman Brothers. 

The company remains one of the largest insurers on the planet, with a dominant position in Medicare Advantage, employer coverage, and healthcare services. Costs are high now, but cost cycles ebb and flow. 

And let’s not forget: Warren Buffett himself just bought the dip – to the tune of $1.6 billion. Buffett doesn’t panic; he waits for others to, then he buys.

Investing Lessons From Crisis to Comeback

The critical lesson of 2008 was simple: don’t confuse cyclical pain with existential death. 

Yes, banks nearly drowned; but the government had every incentive to throw them a lifeline. They didn’t go away, and the survivors got stronger.

Now apply that to today’s healthcare mess:

• The government won’t let the U.S. healthcare system collapse. It’s too central to the economy, too vital to the electorate.
• Obesity, diabetes, cancer, heart disease… They aren’t going away. Demand for drugs, insurers, hospitals, and care systems is only going up.
• Short-term earnings hits, regulatory fears, and trial disappointments are painful but temporary. The long-term trajectory is growth.

In 2009, investors who saw through the fear and bought into the panic made fortunes. The same could be true today with healthcare stocks. 

• Valuation Reset: After years of trading at frothy multiples, Novo, Lilly, and UnitedHealth now trade at ultra-discounted valuations. Novo stock, for example, trades at just 13X forward earnings – about 52% below its five-year average multiple. For defensive, cash-flow-rich giants, massive discounts like this have historically been great buying opportunities. 
• Buffett Effect: Berkshire’s entry into UnitedHealth is no small thing. It signals that, just like with banks in 2009, prescient investors are sniffing out opportunity in a hated sector. Other well-known names bought UnitedHealth stock last quarter, too – like Michael Burry and billionaire David Tepper. The stock is now very widely owned by the “smart money.” 
• Pipelines and Innovation: Lilly’s GLP-1 franchise, Novo’s expanding indications, gene therapy pipelines, AI-driven drug discovery, new payment models – innovation isn’t slowing. It’s accelerating. The market just forgot in a moment of panic.
• Rotation Potential: Tech has sucked all the oxygen out of the stock market room. But when sentiment shifts, beaten-up healthcare names could become the defensive, dividend-paying darlings again; just as banks did after 2009.

The Next Bull Run?

Of course, not everyone is buying the “2008 moment” narrative.

Skeptics point out that political risk, obesity-drug commoditization, and structural cost inflation are real threats. All true.

But that’s exactly what bears said about banks in 2008 – that they were finished. And they weren’t. 

The survivors thrived. Now the same dynamic could be in play for healthcare.

Novo Nordisk, Eli Lilly, and UnitedHealth have been hammered. Sentiment is toxic. Headlines scream collapse. But these companies still dominate their fields, spin off mountains of cash, and serve markets that only expand.

In 2008, investors who sold at the bottom lost fortunes. Those who bought into the panic made them.

If history rhymes, then today’s fear won’t mark the end of healthcare’s golden age but the beginning of its next great bull run… Because if there’s one sector as systemically vital as finance, it’s healthcare. And like the banks in 2009, the survivors won’t just live; they’ll flourish.

Yet, here’s the bigger truth: healthcare isn’t the only sector facing a reckoning…

Across the market, the next 12 to 24 months are shaping up as an Age of Chaos: a period when stock prices soar and crash at light speed. Millionaires will go broke overnight, and unknown companies will multiply tenfold.

My colleague, renowned futurist Eric Fry, has identified seven trades designed to protect and multiply wealth through this turbulence. Some involve dumping household names that look untouchable. Others involve scooping up fast-growing innovators that could be the next Amazon (AMZN) – before Wall Street wakes up.

When chaos reigns, fortunes shift hands. If 2008 taught us anything, it’s that panic creates opportunity. And right now, Eric Fry is showing readers how to seize it.

The post Buffett Is Buying Healthcare Stocks – Should You? appeared first on InvestorPlace.

So I walked into the Chicago Mercantile Exchange for the first time that summer.

The smell hit me first: sweat, paper, and burnt coffee. Then the sound. 

A wall of voices shouting bids and offers, phones ringing, bells clanging. Paper tickets flew through the air like confetti. It was a storm in every sense of the word.

I was just 22 years old, standing shoulder-to-shoulder with men two and three times my age who had been trading longer than I’d been alive. I was nervous and my tie was a little too tight, but I knew I was exactly where I wanted to be.

I didn’t know it then, but those first steps onto the floor would shape everything that came after. That was where I learned what really separates traders who survive from traders who wash out.

That’s where I learned The Trader’s Mindset.

Building Our Framework

Even when you think you’re ready for the challenge, you find out quickly that there’s still a lot left to learn.

Any trader can catch a lucky break here and there, but on the floor you can’t survive on luck alone. You need process. You need conviction. You need discipline. These are the core principles traders fall back on when the waves come crashing in that keep us calm, cool and collected.

It all starts with process. If you can’t explain why you’re in a trade, you don’t belong in it. This isn’t a gut feeling we get from some squiggly lines on a chart, we’re on the hunt for objective reasons to believe that an asset is mispriced. This can take a lot of forms. 

Sometimes it’s as simple as following some unusual options activity (UOA), or spotting mispriced earnings volatility. Maybe we find a divergence between two highly correlated assets. We’ve also had success with special situations like KTOS and combat drones, QXO consolidating the retail building supply space, and more recently with mispriced stocks like BMNR with large Ethereum holdings.

But even the most thorough process doesn’t spare you from the ups and downs of the market.  Nothing moves up or down in straight lines. A trade can look perfect on paper and not go the way you expected. That’s where conviction steps in — the belief born from research and preparation that allows us to remain confident when things don’t go as planned. Without conviction, process is just theory. 

Think of conviction like a heavy fin that runs along the bottom of a sailboat — the keel.. Most people don’t think about it because you never really see it, but it’s the reason the boat doesn’t tip over when the waves slam against the sides. The waves are going to batter you no matter what — you can’t control that. But the keel keeps you upright. Without it, you’re tossed around until you capsize. With it, you can ride out the chop, even when the deck under your feet feels like it’s sinking.

While conviction is what carries us through the rough patches, it’s even better if you can avoid them altogether. That’s where discipline comes in.

Discipline is about setting the rules of the trade before you even put in your first offer. I’ve seen plenty of sharp traders self-destruct. And in every case, they would make the same mistakes…

They would rely too heavily on technical analysis. They let excitement push them into chasing hot trades and oversized bets. They would micromanage their portfolios. They would break their own rules. In the long run, the market will punish you for that kind of recklessness.

Discipline is the patience to wait for your setup, even when the market feels dull and your inner voice is screaming for action. It’s the ability to hold back when a stock is ripping higher and it’s too late to jump in. It’s the humility to admit the story has changed. So you step aside – even if you want to be right.

Discipline is what creates consistency. It’s not glamorous, it doesn’t get applause — but it’s the framework that allows us to fine-tune our approach to the markets. Without it, you’re just swinging at every pitch that comes your way. With it, you’re ready to defend the strike zone and stay at the plate long enough to capitalize on the right opportunity.

Process in Action

Now that you have a better understanding of the trader’s mindset, let’s take a look at one real world example that brings it all together. 

I’ll take you through our recent Lyft (LYFT) trade step by step. It’s a clean example of how process, conviction, and discipline all come together.

Back in July, we took aim at Lyft Inc. The company was getting set to release its next earnings report on August 6. 

We came into earnings with a simple observation: the options market was underpricing the move. The straddle was implying around a 16% swing, but Lyft’s history told us the stock typically moved closer to 20% after earnings. Even better, we also saw that LYFT has been lagging behind its top competitor UBER, which gave us conviction that LYFT still had room to catch up.

That’s the edge. We weren’t guessing. We weren’t saying, “Hey, I think ridesharing is hot.” We were playing the math and had multiple reasons to believe that LYFT had potential to move. 

With catalyst events like an earnings release, we never know for certain whether the stock will go up or down. 

So, instead of making a directional play, we trade the volatility. In this case we structured the trade as a straddle — buying calls and puts on the same strike and same expiration. This way, we didn’t need to worry which way Lyft would break. We just needed it to move more than the market was pricing. 

Discipline Over Emotion

Then earnings hit. Lyft sold off on the news, but not far enough outside of the market maker’s expectations. In this case that meant we were able to take profits on our puts, but it wasn’t enough to cover the total cost of the strangle. Meanwhile the calls were close to worthless, which put us in a tight spot.

A lot of traders see red on one side of their trade and panic. It would be easy to cash them out to try and preserve and claw back some more premium, but as a general rule, we never want to sell an option for less than $0.20. Even if we did, we would still be underwater on this trade.

On the flip side, we could hold onto the calls and see if shares recovered in the nine days before expiration. The situation didn’t look good, but this is where conviction and discipline come into play. 

We knew the research. Sure, the earnings catalysts didn’t pan out. But that wasn’t our only reason to believe LYFT could move to the upside. That conviction in the trade and the discipline in our approach kept us from second-guessing the setup when the stock went against the calls. 

Conviction Rewarded

And then, right at the last minute, the payoff came. On Friday, LYFT started moving after announcing its co-founders Logan Green and John Zimmer were stepping down from the board next year. That means their Class B shares will turn into common stock, killing the dual-class structure and bringing our calls back from the brink. As a result, shares jumped more than 10% and brought our calls back from the brink.

All told, the straddle returned around 5%. Not a barnburner, but a win built on process, conviction, and discipline.

Trades don’t always play out cleanly right after you put them on. A lot of the time, they test your patience. LYFT is a great example.

We didn’t chase. We didn’t guess. We didn’t let emotions drive the bus. 

We found a setup with edge, trusted the research, and managed risk with discipline. That’s the trader’s mindset in action — and that’s how you stay alive long enough to hit the big ones.

And this isn’t the only comeback story we’re seen in the past few weeks. 

We saw rallies in iShares Russell 2000 ETF (IWM), Alcoa Corp. (AA) and Sunrun Inc. (RUN) that looked all but lost only to rebound and take what looked like a surefire loser into the green. 

The lesson in all of these is simple: don’t mistake short-term noise for a verdict on your trade. If your process is sound and your discipline is intact, you don’t have to flinch when a position goes red. The market will test you — it always does. It’s about trusting the framework you’ve built, leaning on conviction when the waves hit, and letting discipline decide the exit.

Train Your Mind to Think Like a Pro

The truth is, no one is born with the trader’s mindset. It isn’t some gift you’re handed when you open a brokerage account or read a book. It’s forged in the fire of real-world trading decisions — like the ones we just walked through with Lyft.

But here’s the thing: you don’t have to spend years on a trading floor to build it. That’s exactly why I created the Masters in Trading Options Challenge. 

Over the course of this program, I walk you step by step through the same framework I’ve relied on for nearly three decades — the same one that kept me steady when trades went against me, and the same one that’s helped thousands of others trade with clarity and conviction. 

From that major victory trading an Ethererum ETF that wasn’t on anyone’s radar…

To our massive wins in stocks I mentioned like TMC (a play on deep-sea exploration) and QXO (builder consolidation)…

Masters in Trading has consistently delivered unique setups with massive upside potential. And the Masters in Trading Options Challenge is designed to show you exactly how we pulled off those trades with conviction, process, and a strong approach rooted in the fundamentals of options trading.

You can click here to learn more and sign up for The Masters in Trading Options Challenge.

Remember, the creative trader wins, 

Jonathan Rose 

Founder, Masters in Trading

The post The Trader’s Mindset: Why We Held Lyft Calls When Everyone Else Panicked appeared first on InvestorPlace.

How important is the AI megatrend in today’s market?

So important that every other investment must be viewed through an AI lens.

According to our macro investment expert Eric Fry, every stock you own going forward must fall into one of four categories:

• AI “Builders”
• AI “Enablers”
• AI “Appliers”
• AI “Survivors”

The Builders are what you expect – the obvious bets like the Magnificent Seven stocks that create the software and hardware architectures facilitating AI technologies.

The Enablers support AI’s growth from behind the scenes, supplying the physical materials, energy, real estate, and/or infrastructure required to build and operate AI systems.

Appliers take those AI systems and use them to boost efficiency, productivity, and profitability – they don’t have to be tech stocks, just effective at using tech to boost profit margins.

And Survivors provide a product or service that is resilient to AI disruption (at least for now) – think agriculture, energy, travel…

In his latest issue of Fry’s Investment Report, Eric dug into this framework, presenting specific investments positioned to lead each of the four categories. I want to draw your attention to one, highlighting an opportunity within.

I’ve profiled it in the Digest in recent months. Readers who took advantage are already up in the trade, but Eric’s deep dive shows that there are plenty more gains on the table.

Let’s talk about the AI Enabler of silver, and how to invest in it today.

“Rare earth metals” have received loads of attention this summer as the raw materials that power AI – and deservedly so. They’re critical for our most futuristic technologies.

But one of the most overlooked heroes in the AI story is far more familiar: silver.

It’s not just a precious metal; it’s the best natural conductor of electricity we have. That makes it indispensable in the wiring, switches, and contacts inside the data centers where AI models are trained, as well as in the chips that run those models.

The more that AI scales, the more demand there is for components that can move massive amounts of energy and data at lightning speed – and silver’s conductivity makes it irreplaceable in those applications.

So, are you bullish on AI? You’re bullish by proxy on silver.

Here’s Eric:

Industrial usage is surging, which the Silver Institute attributes to high-tech applications like advanced semiconductors, 5G infrastructure, EVs, sensors, and power grid components.

AI is supercharging this source of demand in many ways – think denser servers, networking hardware, high-speed interconnects, and power management in AI data centers, all of which lean on silver’s unmatched conductivity.

But there’s another massive tailwind…

It requires enormous amounts of energy to train and use large AI systems. So, many of the AI Builders are racing to pair data centers with renewable power sources – like solar. And guess what’s critical for solar panels?

Every solar panel requires a meaningful amount of silver paste, so the clean-energy buildout feeding AI’s appetite indirectly adds to silver demand too.

Back to Eric:

For years on end, industrial demand for silver has been ramping higher – spearheaded by demand from the photovoltaic solar (PV) industry.

According to the Silver Institute, annual PV silver demand soared more than 65% during the last two years, and now consumes 197.6 million oz – or about 24% of the annual mined silver supply.

While investors crowd into chipmakers and cloud giants, few are connecting the dots on silver. Yet as AI continues to scale, the world’s best conductor could quietly become one of the most strategic metals of the next decade.

It gets better – according to one historical valuation metric, silver is waving a huge “buy me now!” flag.

Let’s go to Eric:

Whenever the silver-to-gold-ratio (SGR) indicator falls to readings that are as low as they are today, the silver price rallies… usually a lot.

For most of the last 30 years, the SGR has ranged between lows around 1.2 and highs around 3.1 – meaning that the price of silver has ranged from 1.2% of the gold price to 3.1%.

The rare moments when this ratio traded below 1.27% signaled great moments to buy silver.

Eric points out that a reading below 1.27% has occurred only eight times during the last 30 years.

Here are the subsequent gains after the first seven of these occurrences:

• 60% over 15 months
• A triple over the next three years
• 370% over the ensuing three years
• 38% over the next five months
• Almost 100% in little more than a year
• A double in less than six months
• 79% in less than two years

Back to Eric for where we are today with this indicator, and what he expects:

Earlier this year, the SGR ratio dipped below 1.27% once again when it hit a low of 1.0% on April 21…

If past is prologue, the silver price will continue chugging higher, and will surpass the S&P.

Now, we haven’t even scratched the surface on another huge angle on this story – how mined silver supply is moving in the wrong direction. Then there’s silver’s appeal as a “safe-haven” asset during times of geopolitical chaos and monetary debasement. But to cover more ground in today’s Digest, let’s jump to the action step.

Out of respect for Eric’s Investment Report subscribers, I won’t name how they’re playing silver. But one easy option for you to consider is SLV, the iShares Silver Trust. It’s engineered to reflect the movements of silver bullion.

Here’s Eric with the final word:

If gold is a “Buy,” then silver is a better “Buy.

Bottom line: a confluence of influences are combining to drive the silver price higher.

In our Tuesday Digest, we highlighted comments from OpenAI Chief Executive Officer Sam Altman the previous Friday.

Altman said:

You should expect OpenAI to spend trillions of dollars [on data center construction in the] not very distant future.

And you should expect a bunch of economists to wring their hands and say, “This is so crazy, it’s so reckless,” and whatever. And we’ll just be like, “You know what? Let us do our thing.”

But a few minutes later in the same interview, Altman had words of warning for investors.

From Bloomberg:

[Altman] sees parallels between the current investment frenzy in artificial intelligence and the dot-com bubble in the late 1990s. In both cases, Altman said, “smart people” became “overexcited” by a new technology.

“Are we in a phase where investors as a whole are overexcited by AI? In my opinion, yes” …

He added: “Someone’s gonna get burned there.”

Our technology expert Luke Lango just weighed in on this.

From his Innovation Investor Daily Notes:

We actually agree: this is a bubble. But bubbles are where fortunes are made — the trick is timing.

With rate cuts likely coming, positive regulation in place, and AI breakthroughs accelerating, we don’t think the pop is near.

In fact, we see at least 12 more months of runway before the cracks start showing.

AI technology is moving so fast that yesterday’s cutting-edge tech is at risk of falling behind.

Here’s Luke explaining:

We’ve entered a two-speed economy split by AI. On one side, there’s the AI economy, firing on all cylinders.

On the other side, the “everything else” economy is lagging. Consumer spending is slowing, margins are compressing due to tariffs, and profits are stuck. Stocks in this camp are fading…

But even within the AI economy, a fresh bifurcation is emerging…

Former high-flying AI stocks are slipping. The disruptors are being disrupted. That’s how fast AI is evolving.

Given this, Luke just recommended that his Innovation Investor subscribers sell a handful of stocks that, not long ago, fit into the “AI/tech leadership” bucket. The list includes GoDaddy and Pinterest.

To illustrate the mindset/analysis, here’s Luke’s thinking on GoDaddy:

GPT-5-class models can generate full sites with code, design, and SEO by themselves. AI can also integrate with cloud hosting directly, bypassing traditional web-building tools.

In this new world where foundational AI models can create websites for you for essentially free, we believe the value prop of web-building service providers like GDDY meaningfully decreases.

Start with one question…

Is this company building the tools of AI, or is it simply using AI as a feature?

The safer names are those providing essential infrastructure – semiconductors, cloud capacity, data center hardware, sensors, core software models – without which AI can’t function. These companies may face volatility, but their role in the ecosystem is foundational.

On the other hand, companies that are just sprinkling AI on top of an existing product face more risk. If their competitive advantage can be easily replicated by the next model upgrade, then their AI “edge” is on borrowed time.

But even if you feel confident that you’ve found a safer “essential infrastructure” play, you can’t ignore the price tag.

Returning to Eric, this is the point he’s been hammering home for months now:

I wouldn’t touch a single overhyped tech stock right now.

While these firms may seem attractive to investors, like Nvidia Corp. (NVDA), the truth is that their valuations are overshot, landing them in the stratosphere.

For instance, Nvidia’s market cap sits at $4.23 trillion, the highest in the world. It is currently trading for 56X its trailing price-to-earnings (P/E) ratio, or about double the market average.

I recommend avoiding stocks like these because their high valuations yield to low valuations… eventually…

That is why I look for companies that have a promising runway built by strong fundamentals – attractive valuations.

Eric recently released a “Sell This, Buy That” research package that urges investors to sell some AI/tech leaders including Amazon, Telsa, and Nvidia. In the report, he reveals what he’s buying instead.

Here’s more from Eric:

I’ve compiled a list of three companies that I believe are “Buys.” These are under-the-radar, early opportunities that can help you protect and multiply your money during make-or-break markets.

You can find the details of these companies – ticker symbols and all – in my special broadcast, free of charge.

Bottom line: Between AI’s self-eating creative destruction and nosebleed valuations, it’s becoming increasingly challenging to find the sweet spot today. But that’s exactly what we’ll help you do here in the Digest (check out silver).

On that note, here’s Luke’s guidance to take us out:

The AI Boom isn’t broadening — it is narrowing.

Gains are consolidating into the hands of the few real AI innovators, disruptors, visionaries, and moat-builders. Our job is too keep adapting so we stay with them.

Don’t get dragged down with yesterday’s biggest winners. Adapt to the times. Evolve with the tech. And always stay invested in tomorrow’s biggest winners.

Have a good evening,

Jeff Remsburg

The post One “Must Own” AI Play Today appeared first on InvestorPlace.

When the mid-20th century photographer Elliott Erwitt remarked, “Be sure to take the lens cap off before photographing,” he was not speaking merely about taking pictures.

Erwitt was advocating an open-eyed approach to life in general…

First, take off the blinders; second, take action.

Too often, we investors attempt to make prudent investments without ever removing the lens caps over our critical perceptions. We forget to remove our biases, prejudices, and/or uninformed assumptions before committing our precious capital to a new investment.

All of us have made this mistake at least once in our investment careers, which is why it is so important to double-check that nothing is obstructing our analytical abilities. This imperative is becoming increasing critical in the era of “everything AI.”

Not only must we remove the lens cap, but we must also replace it with an “AI filter.” In other words, we need to view every new investment opportunity through the lens of artificial intelligence.

AI-enabled technologies possess massive, long-term potential to transform almost every facet of life on planet Earth. They will reshape industries, reorganize the workforce, and, most importantly, redistribute wealth.

Undoubtedly, many investors will try to capitalize by rushing like moths to a flame toward the hottest, hyped-up AI plays. That approach can work, but it’s easy to get burned, which is why I recommend a few alternative tactics.

I’ve identified four distinct AI investment categories, each of which offers different levels of risk and reward.

In today’s Smart Money, I’ll detail two of the categories and share a company for each.

(I’ll share the next two categories in tomorrow’s Smart Money, so stay tuned.)

From this day forward, every stock you consider should fall into one of these categories. This is the all-important “AI filter.”

Now, let’s take a look through it…

Category 1: Investing in AI

Investing “in AI” simply means buying stock in companies that are creating the software and hardware architectures that enable AI technologies to operate and scale.

These companies are building the highways, engines, and “brains” of AI, which includes cloud compute environments, high-performance databases, and scalable data architectures. This category contains the “obvious bets,” like Nvidia Corp. (NVDA), Microsoft Corp. (MSFT), Alphabet Inc. (GOOGL), and Apple Inc. (AAPL),as well as hundreds of hungry, well-financed upstarts.

To succeed in this category, companies must spend billions of dollars to continuously innovate and fight for market share. No small task. That’s why picking winners in this hyper-competitive arena is risky. Today’s champion could easily become tomorrow’s cautionary tale.

Advanced Micro Devices Inc. (AMD) is a clear “in AI” investment.

Its cutting-edge data center GPU accelerators power the training and inference of the large language models (LLMs) that enable AI applications.

This company is an AI “builder.” AMD’s Instinct MI350X series, launching later this quarter, is designed to rival – and in some cases outperform – the most advanced Blackwell chips from Nvidia.AMD offers comparable or better AI performance with greater memory capacity at a lower cost, giving it a significant pricing edge in a market hungry for efficient AI compute.

This value proposition is already resonating with top-tier customers: Seven of the 10 largest AI model builders – including OpenAI, Meta Platforms Inc. (META), Microsoft, and xAI – are running production AI workloads on AMD hardware.

This brings me to my second category…

Category 2: Investing Alongside AI

Rather than creating AI technologies themselves, these companies support AI’s explosive growth from behind the scenes. They supply the physical materials, energy, real estate, and/or infrastructure required to build and operate AI systems.

Although AI may seem like an invisible, nebulous force, it cannot work its magic without millions of physical servers humming along inside the world’s data centers 24 hours a day. And these millions of servers cannot be built and operate without a vast supporting cast like the…

• Mining companies that unearth essential base and precious metals
• Real estate firms that provide suitable land
• Specialized construction companies that build data centers and related facilities
• Electric utilities or captive energy sources that deliver reliable power

These “enabler” companies are the “shovel sellers” of the AI gold rush. Nvidia’s CEO, Jensen Huang, predicts tech companies will spend at least $1 trillion on AI infrastructure over the next four years. Enabler companies will capture most of those dollars.

Although Oracle Corp. (ORCL) invests billions of dollars to develop cutting-edge AI technologies, it operates primarily as an “Alongside AI” company. It is a world-leading AI “enabler.”

The company’s Oracle Cloud Infrastructure (OCI) supports AI platforms and solutions across the entire tech ecosystem. OCI is purpose-built to support compute-heavy tasks like AI training, model deployment, and massive database management.

Even Oracle’s cloud competitors, like Microsoft Azure, Google Cloud, and Amazon Web Services (AWS), have embraced Oracle’s technology in order to serve their own customers.

Rather than choosing sides in the battle between Microsoft/OpenAI, Amazon, and Google, Oracle quietly powers them all. This “Switzerland” approach means Oracle doesn’t just benefit when one cloud wins… it benefits as the overall AI ecosystem expands.

And speaking of benefiting…

Remove the Investing Lens Cap

In the past, investors rarely considered how future-proof a company might be.

We didn’t worry about a disruptive force like AI sweeping across the global economy and rewriting the rules of almost every industry. We focused on fundamentals like market share, earnings growth, and dividends.

But that sort of analysis is no longer sufficient to prepare for the world that lies ahead. To recall the words of Elliot Erwitt, “remove the lens cap” and invest with your eyes wide open.

To aid in this endeavor, I want to share two more companies that fit within my “in” and “alongside” AI categories with you today.

One is a company that uses AI software to control robots tailor-made for warehouses and distribution centers.

The other, a company that quietly built the backbone of the internet and is now manufacturing the fiber-optic cables needed to run AI data centers.

I reveal these companies, along with several others, in my free “Sell This, Buy That” broadcast, so you can add them to your portfolio immediately.

“Removing the lens cap” also means that knowing which stocks to avoid is just as important as knowing which stocks to invest in.

That is why, in this free broadcast, I also share four names that I believe are “Sells” These are companies facing significant AI headwinds that could drag down your portfolio.

Click here to learn more.

Regards,

Eric Fry

The post 2 “AI Filtered” Plays Every Investor Needs Now appeared first on InvestorPlace.

There were no human sprinters, seasoned boxers, or martial arts prodigies. 

Instead, hundreds of humanoid robots competed in track and field events, squared off in boxing rings, even stumbled their way through dance battles in the inaugural World Humanoid Robot Games. 

The event featured more than 500 bots from 16 countries, which competed in 26 events ranging from sprints to more practical acts, like performing hotel concierge duties. Some wowed crowds with their abilities, like China’s own Unitree Robotics, whose “H1” humanoid stole headlines by winning gold in multiple track events. Others collapsed mid-stride, forming robot pileups that drew both laughter and applause. 

But the mere fact that hundreds of humanoids were competing at all – running, fighting, balancing, carrying – was the real victory. Indeed, as NBC noted: “the games were less about winning or losing and more about testing…agility, endurance and battery life, all of which have made great advances in recent years.”

This wasn’t a robotics trade show tucked away in a local convention center. It was a global sports event broadcasted to the world, where humanoid robots demonstrated tangible progress, flaws and all. 

And just like the Wright brothers’ rickety first flights, the stumbles are less important than the takeoff itself… 

Humanoid Robots Step Into Daily Life

For years, humanoid robots were the butt of late-night TV jokes. Plenty of folks poked fun at Honda’s ASIMO shuffling across a stage or Boston Dynamics’ Atlas attempting parkour. 

But in 2025, the narrative has flipped. These machines aren’t confined to research labs anymore. They’re now stepping into jobs, homes, and even geopolitics.

Take Tesla’s (TSLA) Optimus. Once dismissed as an over-hyped Elon Musk sideshow, Optimus is now serving food at the Tesla Diner in Los Angeles. Guests snap photos of the robot scooping popcorn, and Musk says Optimus will soon be a food runner, delivering burgers and shakes within a few months. It’s part marketing stunt, part proof-of-concept. But it sends a clear signal: humanoid robots are crossing into consumer culture.

Then there’s President Trump’s Mar-a-Lago estate, which has reportedly deployed robotic guard dogs as part of its security perimeter. These aren’t humanoids, of course. But the symbolism is striking: a U.S. president trusting autonomous robots with real-world defense. It’s a sign of how far embodied AI has penetrated the national psyche.

Corporate America is moving faster still. Walmart (WMT), the country’s largest employer, has quietly automated nearly all of its warehouses with fleets of robots that handle restocking, packaging, and logistics. Amazon (AMZN), global e-commerce giant, now boasts over 1 million robots across its fulfillment network – everything from squat wheeled bots that shuttle bins to early humanoids designed for handling irregular packages.

And it doesn’t stop there. Foxconn (FXCOF) is experimenting with humanoid robots on its factory floors in China. Hyundai’s Boston Dynamics is piloting humanoid units in logistics and construction tasks. Even hospital systems in Japan and South Korea are trialing these bots as medical aides, capable of lifting patients, fetching supplies, or just keeping lonely seniors company.

What was once a speculative dream – the C-3POs and Rosie the Robots of our childhood imaginations – is finally becoming a tangible reality.

Why Humanoid Robots Are Finally Ready for Prime Time

The leap from clumsy prototypes to real-world deployment is no accident. Three converging forces explain why humanoids are suddenly everywhere:

Together, these factors have pushed humanoids past the “impressive demo” stage into commercial inevitability.

History tells us that technological inflection points – like the one we’re seeing right now as humanoid robots move from concept to reality – are messy but lucrative. 

Early cars overheated and broke down all the time. Early airplanes crashed so often newspapers called flying a “suicidal pastime.” And before 2007, mobile devices were clunky tools for business professionals – until the iPhone made them indispensable.

Now robots are approaching the same launch pad.

The Multi-Trillion-Dollar Robotics ���Ҵ�ý

The World Humanoid Robot Games captured this moment perfectly – awkward and awe-inspiring at once. 

For investors, the lesson is clear: don’t focus on today’s stumbles but on the fact that the race has already begun.

Tesla, Amazon, Walmart, Unitree, and others aren’t building humanoids for YouTube likes. They’re solving trillion-dollar problems in logistics, security, manufacturing, and elder care. That’s why China has pledged more than $20 billion in subsidies, and why the U.S. is fast-tracking robotics under its AI and industrial policies.

Consider the potential markets:

• Logistics & Warehousing: According to the Bureau of Labor Statistics, “In June 2024, the [U.S.] transportation and warehousing industry had an employment level of 6.6 million, accounting for 5 percent of all private-sector jobs.” Even partial replacement could unlock a multi-billion-dollar opportunity.
• Healthcare & Elder Care: The healthcare humanoid robot segment was $2 billion in 2023 and is expected to grow at 16.9% CAGR through 2032. The broader eldercare assistive robotics market is expected to climb from $3.17 billion in 2025 to $10.23 billion by 2035, making humanoid caregiving a fast-expanding field.
• Hospitality & Retail: The wider customer-service humanoid robotics market could surge from $0.465 billion in 2024 to nearly $15.8 billion by 2034, fueling use cases from robot diners to automated check-ins.
• Defense & Security: The global security robot industry was $16.5 billion in 2023 and is projected to climb to around $44- to $57 billion by 2030. The military robots component alone is expected to grow from $19.7 billion in 2024 to $32.5 billion by 2030.
• Domestic Assistance: The household robot market is estimated to hit $95 billion by 2033. Oxford researchers predict up to 40% of chores will be automated within a decade, pointing to mass-market appeal for home-helper bots once cost and reliability improve.

This once-distant sci-fi scenario is unfolding right now, accelerated by the same AI revolution powering ChatGPT, autonomous vehicles, and generative video.

Be the investor who treats today’s humanoids like the 2007 iPhone: awkward at launch, vital a decade later.

The Future Belongs to Embodied AI

The 2025 World Humanoid Robot Games were a declaration, not a spectacle. 

Humanoid robots are no longer science fiction. They are here and improving fast.

From Tesla’s Optimus to Amazon’s million-strong robotic fleet; Walmart’s automated warehouses to Trump’s robotic guard dogs, embodied AI is crossing into daily life.

For investors, this is the moment to act; not because robots are flawless today, but because the trajectory is unmistakable. Back the winners early, and you’ll own a piece of the next trillion-dollar industry.

Right now, behind the scenes, an ecosystem of suppliers is gearing up to power this robotic future: companies producing the sensors, edge chips, power modules, actuators, and embedded inference engines that turn AI code into real-world capability.

If you want to get your portfolio ready for the next leap in this megatrend, don’t get distracted by the flashy AI applications or speculative meme plays. Zero in on the components – and the companies – making them possible.

The post Humanoid Robots Are Awkward Now – But Not for Long appeared first on InvestorPlace.

Options aren’t some Wall Street mystery reserved for guys in $5,000 suits.

I get it. You start reading about straddles, strangles, iron condors, and butterflies, and your eyes glaze over. It feels like learning a foreign language. So you retreat back to what’s comfortable — buying and selling stocks.

But here’s what you’re missing: Options are just another way to trade your same opinion on the same stocks you already know.

Have you ever bought a stock because you thought was going up? How about selling a stock because you thought it had run too far? Congratulations. You already understand every options trade.

You’re expressing your view on where an asset is headed. That’s it. Same goal, different tool.

I’ve been doing this for nearly 30 years. And I’ve helped thousands of others do it too.

People often call me “the options guy.” I get it — and I’m flattered— but that’s not how I see myself…

I’m a results guy.

The way I see it — whether it’s stocks or options — the goal is the same:

We all have an account we’re trying to grow over time. My job is to help you find the most efficient, strategic, and rewarding way to do that.

You don’t need to be an “options trader” or a “stock trader.”

You just need to be an investor who wants to grow smarter.

When opportunity strikes — like the next big breakout in a stock you believe in — you deserve to know all your options (pun intended).

Let me help you see them clearly.

Join me for today’s Masters in Trading, where I’ll break down the fundamentals over my overall approach. I’ll show you some of the biggest takeaways from members of our Discord community. And I’ll show you just how easy using my approach can be. You can check it out below.

Masters in Trading consistently delivers unique setups with massive upside potential.

And for anyone who’s still on the fence, I want to put something special on your radar – The Masters in Trading Challenge. It’s a one-of-a-kind, seven-day intensive that will teach you the exact system we use to spot the biggest opportunities in the options market no one is talking about.

From that ETH trade that was on no one’s radar…

To our massive wins in TMC (a play on deep-sea exploration) and QXO (builder consolidation)…

Masters in Trading has consistently delivered unique setups with massive upside potential.

Want to learn all the fundamentals behind these big trades?

You can click here to learn more and sign up for The Masters in Trading Options Challenge.

The post From Stock Picker to Smart Money: Why Options Change Everything appeared first on InvestorPlace.

The Fed is stuck between a bit of a rock and a hard place.

So wrote legendary investor Louis Navellier in last Friday’s Growth Investor Weekly update.

At the heart of this bind is the Federal Reserve’s dual mandate – maximum employment and stable prices. Both goals show signs of deterioration.

The challenge is that the Fed’s cure for one side of the mandate worsens the illness on the other.

So, which side gets the Fed’s lifeline?

As a quick recap, the July jobs report showed non-farm payrolls rising merely 73,000 – far below expectations. Meanwhile, the unemployment rate crept up to 4.2%, a sign that the labor market may be losing steam.

Then last Friday brought troubling sentiment data. Here’s our hypergrowth expert Luke Lango explaining:

The August University of Michigan Consumer Sentiment survey was… well, bad.

The sentiment data was the real gut-punch: overall consumer sentiment dropped from 61.7 in July to 58.6 in August (economists had expected an uptick) …

And views on the job market slid to their worst level since 2008.

Turning to inflation, last week brought alarming data from the red-hot Producer Price Index (PPI) report.

Here’s Louis with the quick summation:

The Producer Price Index (PPI) came in much hotter than anticipated.

Headline PPI rose 0.9% in July, compared to estimates of 0.2%… On a yearly basis, headline PPI is now up 3.3%, and core PPI is up 2.8%.

The jump in PPI in July ignited some fears that companies will need to pass off rising costs to consumers. In other words, folks are concerned that consumer prices will start to rise in the coming months.

So, how will the Fed try to thread this needle?

That’s what Wall Street is trying to answer – and why all eyes are on Fed Chair Jay Powell and the Jackson Hole Economic Symposium this Friday.

During Powell’s speech on Friday, investors will be listening for clues about the Fed’s rate cut plans – specifically, for the September meeting.

In the wake of the weak jobs report, the expectation for a September cut hit 100% – and some market participants, like Louis, said a 50-basis-point cut was on the table.

But after last week’s PPI inflation data, expectations are falling. According to the CME Group’s FedWatch Tool, the odds of a 50-basis-point cut have dropped to zero, and that 100% rate-cut conviction is down to 83%.

So, what will Powell say?

Given that there won’t be an explicit pre-commit to a rate cut, we’ll be listening for language indicating that he’s skewing in one direction when he discusses the balance of risks.

To that end, when Powell references the labor market, if he talks about a return to more “normal” conditions rather than emphasizing a “weakening” trend, it might signal a greater degree of comfort with the current environment. Translation – no cut.

On inflation, we’re listening for Powell’s characterization of inflation as “one time pass-through” or persistent. The more he references the perspective of Fed governors Waller and Bowman (that inflation is pass-through), the greater the likelihood of a September cut.

Also important is how Powell speaks about the degree of “unknowns” ahead that could impact inflation.

Regardless of what Powell says, nothing is certain. Remember, according to the Dot Plot from the FOMC’s June meeting, seven of the 19 meeting participants expected no rate cuts for the remainder of 2025. However, recent discussions and the Waller/Bowman dissenting votes show that things could evolve more quickly than expected.

As for Louis, he’s predicting a cut:

There is a growing minority of FOMC members that want to cut key interest rates – and I suspect that will soon be a majority.

So, a September rate cut is growing more and more likely, and once the Fed finally slashes key interest rates, it should serve as a “turbo boost” to the stock market.

Luke is in the same camp.

In his recent Innovation Investor Daily Notes, after explaining why last week’s PPI data didn’t scare him, and why we shouldn’t place too much weight on consumer sentiment surveys, Luke concludes:

Step back and the macro picture hasn’t really changed:

• Inflation→ Still tame when you dig into the data.
• Rates→ Cuts are coming, likely starting in September.
• Economy→ Slower in spots, but far from recession territory.
• ���Ҵ�ý→ Healthy uptrend, with near-term volatility as just noise.

So, all eyes on Powell this Friday. We’ll report back.

Earlier, we highlighted how the University of Michigan’s Consumer Sentiment survey showed that overall consumer sentiment dropped from 61.7 in July to 58.6 in August – something that Luke largely brushed off.

Let’s dig deeper into why Luke is downplaying the data:

Consumer sentiment is notoriously volatile — it’s the emotional teenager of macro data.

We’ve seen it swoon before without denting actual spending trends, which only tend to follow sentiment down when pessimism stays entrenched for months…

Consumer sentiment crashed in early 2025 and it has been generally rebounding ever since.

This drop was the first since April, following a steady rebound earlier in the year. That makes it look more like a one-off bad mood than the start of a new downtrend.

To Luke’s point, below is the chart of consumer sentiment from the University of Michigan. I’ve circled 2025 so you can see the crash/rebound Luke referenced.

Here’s Luke’s takeaway:

Unless the September numbers are bad, too, we wouldn’t make too much of this August report.

Don’t let a grumpy sentiment survey shake you out of position. This is noise — and smart investors know what to do with noise.

Behavioral finance consistently shows that investors – and too often, their advisers – are too quick to sell winners and too slow to cut losers. This is a cognitive bias known as the disposition effect.

Yesterday, ���Ҵ�ýWatch highlighted a pilot program by a French brokerage suggesting that this bias can be nudged into check.

In a recent experiment at BNP Paribas’s firm Portzamparc, advisers were no longer shown whether their clients’ holdings were sitting at a gain or a loss (clients still had access online).

Here’s ���Ҵ�ýWatch:

The intervention’s premise was that if financial advisers amplify their clients’ disposition effect, removing their ability to observe acquisition prices would reduce this bias.

The results were interesting. Before the change, highly advised clients were 50% more likely to sell assets showing a paper gain than those with a loss.

Post-intervention, that dropped to just 20%, and the brokerage saw monthly returns rise by 0.2 percentage points. Over a year, that’s roughly 2.4% extra return, which could be significant money based on the size of your portfolio.

While you shouldn’t ignore returns, performance on any single day, or even over short stretches of time, shouldn’t be your focal point.

Instead, focus more on why you bought your position – e.g., “This is a 5-year growth play on Physical AI and robotics” – and revisit that thesis quarterly.

In your analysis, beyond earnings and revenue growth, look at margins, debt levels, and overall competitive position. Even if the data isn’t perfect, trends over time usually tell you whether a company is strengthening or weakening.

Meanwhile, for those stocks where you’re underwater, don’t fixate on the loss. Instead, ask “is this stock the best use of my capital today based on all I know?”

If the answer is “yes,” ignore the loss.

If the answer is “no,” sell and move into a stronger stock.

Remember, your long-term “north star” in all this is earnings. Short-term price fluctuations are usually noise.

This recalls Louis’ “Iron Law” of the stock market:

Stock price trends can diverge from earnings trends for a while, but over the long-term, if a company grows and grows the amount of cash it takes in, its share price is sure to head higher.

A moment ago, I wrote:

Instead, focus more on why you bought your position – e.g., “This is a 5-year growth play on Physical AI and robotics” – and revisit that thesis quarterly.

This was intentional.

Physical AI/robotics is the next phase of the AI megatrend. That’s why Louis and Luke, along with Eric Fry, recently released their latest collaborative investment research package about how to position yourself today for the coming era of Physical AL.

Their Day Zero Portfolio holds the seven stocks they’ve identified as best-of-breed in AI-powered robotics, providing targeted exposure to the next wave of AI exponential progress.

Here’s their respective quick takes:

From Louis:

We’re at the beginning of an innovation revolution built on robotics, AI-powered factories, autonomous logistics and more.

It’s arguably the most transformational thing to happen to our society since the Industrial Revolution.

From Eric:

Thanks to AI, robots are now stepping off the screen and into the real world – and taking over physical tasks once reserved for humans.

This shift will reshape entire industries… It’s blindingly obvious that the world of the future will look little like the world today.

From Luke:

We’re in the middle of the most profound platform shift in human economic history.

All the growth in today’s economy is happening inside the AI ecosystem. Everything else is just noise.

Just a heads-up – several of their recommendations have already jumped double digits (in less than two weeks), and they’re pruning some of their older picks as AI continues to evolve and leadership within the AI sector shifts.

So, we’ll likely soon be taking down their research video along with the discussion of their favorite Physical AI leaders. So, if you’ve been meaning to watch, just a friendly notice that we’re winding down. For now, you can see it all right here.

We’ll end today with their latest collective update on their portfolio:

New innovations also have spillover effects on previous technologies, further compounding their value.

AI today, for instance, can be used to enhance older technologies such as cars (self-driving vehicles), PCs (AI PCs), and smartphones (personal assistants).

If Physical AI follows this same trajectory (and we believe it will), we could be looking at $20 trillion or more in value creation.

This isn’t just another boom. It’s a multiplier.

That’s why we want to encourage you to consider our latest seven picks in robotics, if you haven’t yet.

Have a good evening,

Jeff Remsburg

The post What You’ll Hear From Powell at Jackson Hole appeared first on InvestorPlace.

When companies in the retail sector report their earnings, they aren’t just reporting numbers… they’re showing us where Americans are actually spending their hard-earned dollars.

Now, if we learned anything from last week’s retail sales report, it’s that consumers are still spending, albeit cautiously. But the way they’re spending – on home improvement, groceries or discretionary items – can tell us far more about the strength (or fragility) of this economy than a line item buried in a government release.

So, in today’s ���Ҵ�ý 360, let’s review Home Depot Inc.’s (HD) results from this morning. I’ll also review the expectations for the other three companies reporting this week: Lowe’s Companies Inc. (LOW), Target Corp. (TGT) and Walmart Inc. (WMT). Then we’ll talk about whether these companies are right for your portfolio. Let’s get started…

Getting More Done… or Just Getting By?

Home Depotreported earnings of $4.68 per share on revenue of $45.28 billion, up slightly from $4.67 per share and $43.18 billion in the same quarter of last year. Analysts were calling for earnings of $4.72 per share and revenue of $45.41 billion, so Home Depot just missed analysts’ expectations. This is the second straight quarter that the company has missed earnings expectations. Not only that, but it was also the first time it fell short on both earnings and revenue expectations since May 2014.

Despite this, Home Depot reiterated that it expects net sales to grow 2.8% and same-store sales to increase 1% for the fiscal year.

Home Depot president and CEO Ted Decker said:

The momentum that began in the back half of last year continued throughout the first half as customers engaged more broadly in smaller home improvement projects.

Meanwhile, management warned that higher tariff rates for imported goods could impact the company’s prices. But they also noted that these changes “won’t be broad based.”

Shares of Home Depot opened nearly 2% higher today and continued to hold that strength throughout the day. This is great for the company as it has only tacked on a 1.5% gain so far this year before this report.

What To Expect From The Rest…

Let’s briefly review what to expect from the other retailers this week…

Next up will be Lowe’s, which announces tomorrow morning before the stock market opens.  The consensus estimate calls for second-quarter earnings of $4.24 per share on $23.96 billion in revenue, which compares to $4.10 per share and $23.59 billion in the same quarter a year ago.

It is also important to note that Lowe’s first-quarter earnings showed a persistent weakness in big-ticket spending, so that will be important to watch in the report tomorrow.

Target will also report before the market opens tomorrow. Second-quarter earnings are forecast to fall 20.6% year-over-year to $2.04 per share, down from $2.57 per share in the same quarter a year ago. Revenue is expected to decrease 2.2% year-over-year to $24.9 billion. Softer spending on discretionary items – things that people want, but don’t need – weighed on sales last quarter. So, we will see if this continues to be an issue in this latest quarter.

Finally, on Thursday, Walmart will drop its latest numbers. The consensus estimate calls for earnings of $0.74 per share on $174.3 billion in revenue, which compares to $0.67 per share and $167.8 billion in the second quarter of 2024. Remember, Walmart was one of the companies to say it would be passing the cost of tariffs to consumers and raising its prices. So, this report will be a look into where that stands.

Earnings Are One Thing… Fundamentals Are Another

Leading up to these earnings, and following Home Depot’s report, you may be tempted to invest in these stocks. But before you do, wouldn’t it be nice to know if they have the fundamentals to justify buying?

Well, that’s where my Stock Grader tool (subscription required) can help. You see, when it comes to picking market-beating stocks on Wall Street, there are a handful of things I look at. From earnings momentum to cash flow and sales growth… I have an 8-point fundamental analysis that tells me, and you, whether a stock is good to buy or if you should sell.

And the Stock Grader tool makes it easy for you to access this data all in one easy-to-understand grade.

So, when it comes to these big retailers, let’s see how they stack up…

As you can see, three of them probably aren’t worth considering right now,

Walmart, with a B-rating, is the only one worth a look.

Home Depot and Lowe’s have C-ratings, making them a hold… in other words, I would not buy them right now, but I wouldn’t sell them just yet either. And finally, Target holds a D-rating making it a sell.

The Bigger Picture for Investors

Now, I have to warn you that this market environment is a bit unusual right now…

We are in the midst of a five-month “melt-up” that is just mind-boggling. Since the April lows, the S&P 500 has soared nearly 30%. And it is not normal.

As my longtime readers know, I usually dread the month of August because it’s when Wall Street’s “A” team goes on vacation. This is when things can get dicey… Trading volume dries up, and stocks become more vulnerable to manipulation by unscrupulous short sellers and hedge funds.

But so far, that hasn’t been the case. 

So while consumer activity continues to remain a mixed bag, the foundation is set for what I call “economic nirvana,” which I plan to explain in detail later this week.

And if the Fed cuts key interest rates as expected at its meeting in September, all bets are off – the market could soar even higher.

Because of this, it is important to invest in fundamentally superior stocks that are poised to profit during this strength.

I recognize that it can be hard to separate the winners from the losers, though. That’s why I recommend you consider my Growth Investor service.

My Growth Investor stocks are backed by 22.8% average annual sales growth and 87.6% average annual earnings growth. Not to mention that the average Growth Investor stock has also had its earnings estimates revised 6.5% higher in the past three months, so the analyst community remains very positive on our stocks.

In other words, those who follow my Growth Investor stocks can invest confidently and reap the rewards of a strong market. Backed by my powerful Stock Grader tool, these are the stocks that exhibit tremendous relative strength and typically lead the market higher.

If you’d like to view my Buy List stocks, learn how to join me at Growth Investor today. You’ll also have full access to my Special ���Ҵ�ý Podcasts, special reports and past Weekly Updates and Monthly Issues.

Click here for more details.

(Already a Growth Investor subscriber? Click here to log in to the members-only website.)

Sincerely,

Louis Navellier

Editor, ���Ҵ�ý 360

The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

Walmart Inc. (WMT)

The post 4 Retail Stocks Report Earnings This Week… Which of Them Are “Buys”? appeared first on InvestorPlace.

The trick is knowing when a company’s numbers reflect prophecy… 

Because if you pay Wall Street close enough attention, it may reward you with a clear glimpse into the future.

In fact, that’s what Palo Alto Networks (PANW) did when it delivered blockbuster earnings results last night.

Annual recurring revenue blew past expectations. Profits popped. Management’s guidance for next year was stronger than the Street dared hope. And the stock shot higher in after-hours trading.

The market, in one clean move, made clear that cybersecurity is entering its AI supercycle.

Palo Alto’s quarter wasn’t just a victory lap for its shareholders. It was a microcosm of what’s happening across the entire cybersecurity industry right now. AI has changed the game for hackers – which means it must also change the game for defenders. 

And that shift is creating one of the most compelling multi-year growth opportunities on Wall Street…

From Manual to AI-Driven Threats: A Cybersecurity Arms Race Begins

For years, hackers worked like artisanal thieves: crafting code, testing exploits, iterating until they found a way in. Painstaking work. 

But now they’ve got AI-powered battering rams.

Large language models can generate malware in seconds. Automated reconnaissance tools can scan the digital universe for vulnerabilities faster than human security teams can even pour a cup of coffee. Once-humorous phishing emails now read like they really were written by your boss, complete with tone, phrasing, and context.

In short, hackers have leveled up. And they’ve done it with the exact same technology Wall Street is drooling over: AI.

Meanwhile, enterprises aren’t exactly sitting still. They’re rolling out generative AI applications for all workflows, from marketing to customer support to supply-chain management. 

That’s great for productivity. But every new AI app is a new pipeline of sensitive data – customer info, proprietary IP, financials – flowing across servers, cloud platforms, and edge devices.

As a result, the “attack surface” – all the potential entry points that a malicious actor could exploit to gain unauthorized access to a system, network, or application – has ballooned. It’s like turning a two-bedroom bungalow into a 20-room mansion, filling it with valuables, and leaving all the doors and windows open.

Two forces are now colliding:

And when an unstoppable force meets an immovable object, only one side wins. That’s why the future of cybersecurity depends on a new class of defenses – built with the same AI horsepower hackers are using to break in.

Defense in the AI Age: How Cyber Titans Now Fight Back Smarter

Enter Palo Alto, CrowdStrike (CRWD), Fortinet (FTNT), Zscaler (ZS), SentinelOne (S), and the rest of the cyber elite.

Gone are the days of traditional firewalls. These security titans are building autonomous, AI-native defense platforms that can anticipate, detect, and neutralize attacks at blazing speeds. Think of them as the providers of AI bodyguards that are always alert, always faster, and always learning.

Palo Alto’s Cortex Cloud and Prisma AIRS. CrowdStrike’s Falcon with real-time AI threat intelligence. Zscaler’s zero-trust, AI-driven SASE platform. SentinelOne’s autonomous detection and Purple AI tools…

The sector has officially moved from code vs. code to AI vs. AI.

And in a world where CEOs might cut marketing budgets or pause hiring during an economic downturn, cybersecurity budgets don’t shrink. They expand. 

Boards don’t want to explain to regulators or shareholders how an AI-powered hack drained millions from customer accounts. So, they spend to defend. 

In other words, cybersecurity spending is becoming non-discretionary. And that makes it one of the most resilient, secular growth stories on Wall Street.

PANW’s Earnings Prove AI Cybersecurity Is a Growth Juggernaut

Palo Alto’s quarterly print was essentially a masterclass in how this supercycle plays out financially.

• Revenues rose 16% year-over-year to $2.5-plus billion.
• Profits are up more than 25%.
• Annual recurring revenue growth was north of 30%.
• RPO (remaining performance obligations) – basically future contracted business – grew nearly 30% to $15.8 billion.

And the forward guidance? Management is calling for over $10.5 billion in revenue next fiscal year – blockbuster growth for a company already at scale.

Investors didn’t miss the signal here and sent Palo Alto stock ripping higher.

But PANW’s big surge is all part of the bigger cyber-AI narrative. See; Wall Street has always loved a neat, overarching story:

Now we’re seeing the next derivative play taking shape: AI-driven cybersecurity.

Think of it as a symbiotic trend. AI makes companies smarter – and more vulnerable. That vulnerability fuels demand for cyber protection. And cyber companies are deploying AI themselves to defend the gates.

It’s a virtuous cycle of demand, innovation, and profit growth: exactly the kind of flywheel Wall Street eats up.

AI Defense Squad: CrowdStrike, Zscaler & Others Ready to Soar

Of course, while Palo Alto’s earnings stole the spotlight, plenty of companies are poised to ride this secular boom to new heights:

• CrowdStrike: Arguably the most beloved pure-play cyber stock, known for its cloud-native Falcon platform. A poster child for AI-driven threat intelligence.
• Fortinet: Strong balance sheet, entrenched in firewalls, expanding AI features across its Security Fabric.
• Zscaler: Zero Trust is becoming enterprise doctrine, and Zscaler’s platform sits right in the middle of this paradigm shift.
• SentinelOne: A younger, faster player, pushing AI autonomy in endpoint detection.
• Check Point (CHKP): The old guard but with new AI copilots built into its Infinity architecture.
• Identity and exposure specialists like SailPoint (SAIL), Tenable (TENB), and Qualys (QLYS), each leaning on AI to scan, monitor, and protect expanding digital environments.

This is a rising tide story. Investors don’t have to pick just one winner. 

With Cyber Threats Rising, Spending on Defense Becomes Unavoidable

Cybersecurity is quickly becoming an existential factor – something that’s not just ‘nice to have’ but ‘make or break.’ 

Indeed, analysts see global cyber spending ballooning from ~$250 billion today to half a trillion dollars within the decade. 

Some even predict the first trillion-dollar cybersecurity company could emerge in the next five years.

That may sound aggressive… until you realize that just a few years ago, Nvidia was a $300 billion chipmaker – and is now worth more than $4 trillion. 

When technology trends hit exponential growth curves, valuations follow. So, here’s our take: Palo Alto’s earnings did more than just beat the Street’s estimates. They served as the flare gun signaling the start of a new investment theme.

AI is making hackers much more efficient, at the same time that enterprises are exposing more data. 

Cybersecurity companies are responding with AI-native defenses. Spending is accelerating. Profits are surging. And Wall Street is catching on.

The AI trade is now expanding beyond Nvidia to include Palo Alto, CrowdStrike, Zscaler, and the whole cyber cohort. This could be the next megatrend: an unstoppable secular boom riding shotgun with the AI revolution itself.

And the real beauty of it? While AI infrastructure stocks may ebb and flow with GPU demand cycles, cybersecurity is perpetually essential. As long as data exists – and hackers are around to steal it – this sector’s surge has no end date…

Especially as robotics continue to enter the fold.

Cybersecurity + AI = The Next Trillion-Dollar Field

From factory floors to hospital wards, we’re handing critical tasks to machines that run on connected software. That makes IoT cybersecurity not just a back-office concern but a frontline defense for how our future economy functions.

It’s exactly why Eric Fry, Louis Navellier, and I believe the next trillion-dollar winners won’t just be in software but in Physical AI: the fusion of robotics and artificial intelligence. 

Since 2023, we’ve helped readers ride every wave of the AI boom, from chipmakers to quantum computing. Now, we’re convinced robotics will define the next great era of growth investing.

That’s why we’ve built the ‘Day Zero’ Portfolio – a handpicked collection of seven stocks positioned at the intersection of AI and robotics. These are the companies that could lead the charge in this fast-moving megatrend.

Learn more about those top stocks while you still can.

The post Forget Chips. Cybersecurity Is AI’s Most Explosive Growth ���Ҵ�ý appeared first on InvestorPlace.

Prices bounce around. News breaks. ���Ҵ�ý correlations change on a dime. And if you can’t see how everything connects in real time, you’re always one step behind.

It’s a lot like watching a football game on TV. You see the camera cut to the quarterback, maybe a flash of the receiver, then the ball’s in the air.

But you don’t see what’s happening across the rest of the field — the safety creeping up, the cornerback cheating inside, the linebacker dropping back into coverage.

All the things that tell you where the play is going before it happens are hidden from view.

Now, when you’re at the stadium, it’s a different story. You can see the whole field — all 22 players. You watch the defense shift.

You see the gap open before the snap. You know, before the quarterback even throws, exactly where the ball should go. That wide view changes everything.

That’s the kind of perspective I realized we needed to understand the explosion around Ethereum.

For weeks, I’d been talking about how certain companies hold huge amounts of ETH in their treasury — and how their stock prices don’t always match the value of what they own. Those mismatches are opportunities, but they open and close fast.

One day, while I was breaking this down live for our members — digging through filings, lining up ETH prices, stock prices, market caps — it hit me: we were watching the game on TV.

We were piecing together the action from different angles, different screens, different charts… but we couldn’t see the whole field at once.

So I built a tool that does exactly that. One screen. All the companies, all their ETH holdings, their market caps, and whether they’re trading at a premium or a discount — updating in real time.

Now, when Wall Street’s defense blows an assignment, we see it instantly. And when we see the opening, we can move before the rest of the market even knows it’s there.

This tool is our ticket to the stadium — the full-field view that lets us trade like we’re on the sidelines, not stuck at home watching the highlights.

And in today’s Masters in Trading LIVE at 11 AM EST, I want to break down exactly how we used that tool to get a beat on one of the biggest market trends of the year. And I want to explain the tale of one trade we discovered that single-handedly gave us one our biggest-ever crypto based plays. You can watch the video at the end of this post.

And I want to make something else very clear.

My greatest passion is uncovering trades no one else is watching, where you can risk small and win big.

From that ETH trade that was on no one’s radar…

To our massive wins in TMC (a play on deep-sea exploration) and QXO (builder consolidation)…

Masters in Trading has consistently delivered unique setups with massive upside potential.

Want to learn the fundamentals behind these big trades? I’m inviting you to take this journey with me. It’s all in the special options-trading intensive I designed to take anyone from novice to pro in just seven days. Just click here to learn more.

The post The Real-Time ETH Trade Tracker That Crushed Wall Street appeared first on InvestorPlace.

Last Thursday, OpenAI Chief Executive Officer Sam Altman, dropped a few bombs:

You should expect OpenAI to spend trillions of dollars [on data center construction in the] not very distant future.

And you should expect a bunch of economists to wring their hands and say, “This is so crazy, it’s so reckless,” and whatever. And we’ll just be like, “You know what? Let us do our thing.”

But a few minutes later in the same interview, Altman had words of warning for investors.

From Bloomberg:

[Altman] sees parallels between the current investment frenzy in artificial intelligence and the dot-com bubble in the late 1990s. In both cases, Altman said, “smart people” became “overexcited” by a new technology. 

“Are we in a phase where investors as a whole are overexcited by AI? In my opinion, yes.”

Altman said, “society as a whole” is unlikely to regret the massive investment in AI, but also admitted he thinks some current startup valuations are “insane” and “irrational behavior.”

He added: “Someone’s gonna get burned there.”

So, which is it?

Are AI stocks about to roar higher as trillions flood the sector, making investors rich?

Or are they set to implode once investors realize that today’s nosebleed valuations aren’t supported by real profits?

Let’s tackle this from two perspectives…

Technology expert Luke Lango’s argument can be summed up in one sentence : “Most money in the modern economy is going to AI.”

He points to what he calls the AI Bazooka – the concentrated financial firepower of the world’s richest companies aimed directly at AI dominance.

From Luke:

These aren’t little R&D projects. We’re talking about trillion-dollar corporations going all-in.

Nvidia, Microsoft, Apple, Alphabet, Amazon, Meta, Broadcom, Taiwan Semiconductor, Tesla — their balance sheets make most nations look like lemonade stands.

And they’re opening the floodgates…

Microsoft’s annual capex is on track to jump from less than $15 billion before COVID to about $90 billion. Meta’s going from $20 billion in 2022 to nearly $90 billion now. Alphabet? From $20 billion to $95 billion. And Amazon is leading the charge at more than $120 billion.

(Disclaimer: I own MSFT, GOOG, and AMZN.)

Put it all together, and Luke says the top five U.S. hyperscalers are set to spend over $400 billion in the next year alone – compared to less than $150 billion just before ChatGPT went public in late 2022. And he expects that number to hit $1 trillion annually by 2030.

Back to Luke:

Every new AI model demands more compute, more storage, more bandwidth, more power.

The more they spend, the more AI integrates into daily life, which drives even more spending.

This is a compounding growth flywheel – and as long as the AI Bazooka is firing, AI infrastructure stocks will keep ripping higher.

Now, Luke acknowledges that booms eventually bust.

He fully expects an eventual “AI Bust” once rate cuts overshoot and inflation returns. But he doesn’t think we’re there yet:

We’ve got another 12 to 24 months of blockbuster runway ahead for AI stocks.

Macro Investing Expert Eric Fry doesn’t disagree that the spending wave is massive.

His concern isn’t the spending. It’s the price investors are paying for the companies doing the spending:

Nvidia’s market cap is $4.23 trillion — the largest in the world.

It trades at 56 times earnings, about double the market average.

Eric believes that many of these AI companies are great businesses – but a great business isn’t a great investment if the price tag is too high.

Here’s Eric:

I’m saying that right now, the valuations are overshot.

You don’t want to stock up on overvalued or faulty companies. You want to invest in the right stocks at the right time.

What that means, in Eric’s playbook, is avoiding the mega-cap names that everyone is crowding into. Instead, look for fundamentally strong companies trading at attractive valuations.

Luke and Eric’s perspectives aren’t really at odds – they’re complementary.

Luke is right that the AI spending boom is real, massive, and still gathering steam.

Eric is correct that many of the companies funding this boom are priced for perfection, and perfection rarely lasts forever.

The smart approach? Take both to heart.

Own the companies on the receiving end of all those billions… while steering clear of (or at least, being cautious about) the overvalued AI mega-caps that are shelling them out.

That way, you’re positioned to ride the upside of the AI Bazooka – without standing directly in front of it.

Enough theory – let’s get down to brass tacks.

Luke has specific “buy” recommendations:

The beneficiaries are spread across the entire AI supply chain.

Raw Materials

• MP Materials (MP)– Rare earths supplier up nearly 600% in the past year.
• Commodity producers feeding chip and component manufacturers are seeing their order books fill years in advance.

Chip Foundries & Compute Engines

• Taiwan Semiconductor (TSM)– Up 250% since ChatGPT’s launch.
• Nvidia (NVDA)– The poster child of the AI boom, up over 1,500% in five years.

Memory & Storage

• Micron (MU), Western Digital (WDC), Seagate (STX)– All screaming to 52-week highs.

Semiconductor Equipment

• ASML (ASML), Lam Research (LRCX), Applied Materials (AMAT)– Selling the pickaxes in this gold rush.

Interconnect & Networking

• Astera Labs (ALAB)– Up nearly 4x since April.
• Marvell (MRVL), Rambus (RMBS)– Essential for the high-speed data movement AI demands.

Datacenter Networking & Optics

• Arista Networks (ANET)– Red-hot networking leader.
• Lumentum (LITE), Coherent (COHR)– Optics stocks hitting all-time highs.

Power Generation & Energy Grid

• Constellation (CEG)– Up 50% this year.
• Vistra (VST)– Up 170% in the past year.
• Quanta Services (PWR), Eaton (ETN)– Building the AI-powered grid.

Cooling & Infrastructure

• Vertiv (VRT)– Cooling solutions darling.
• Dell (DELL)– Server rack integrator on a tear.
• Digital Realty (DLR), Equinix (EQIX)– Datacenter developers cashing in.

This is the blast radius of the AI Bazooka. These stocks have been winning, and so long as the bazooka keeps firing, they’ll keep winning.

(Disclaimer: I own ASML, VRT, LITE, COHR, DLR.)

For more of Luke’s AI research and his specific AI recommendations, you can learn about joining him in Innovation Investor here.

Eric recently put out a “Sell This, Buy That” research package that urges investors to sell four market darlings.

I got his permission to reveal three of them: Amazon, Tesla, and Nvidia.

In Eric’s report, he reveals what he’s buying instead. There are AI picks – especially related to robotics. 

Here’s more from Eric:

I’ve compiled a list of three companies that I believe are “Buys.” These are under-the-radar, early opportunities that can help you protect and multiply your money during make-or-break markets.

You can find the details of these companies – ticker symbols and all – in my special broadcast, free of charge.

In a way, he already gave us the roadmap…

Yes, “trillions” will be spent on AI in the not-too-distant future – and yes, we’re in a phase of “overexcitement” with some “insane” valuations.

That’s essentially Luke and Eric’s combined message…

The spending tsunami is real. The opportunities for the companies on the receiving end of it are enormous. But some of today’s biggest, most beloved AI names are priced as if they’ve already won the next decade – and that’s when investors are at risk of getting burned.

Here’s our bottom line: Follow both Altman’s money – and his warning.

History shows that valuation matters…eventually. So, be smart about where you place your bets today.

Own the reasonably-valued beneficiaries of the AI boom, while being careful about the valuations of the ones writing the biggest checks.

Have a good evening,

Jeff Remsburg

The post The AI Stocks to Sell (and Buy) Now appeared first on InvestorPlace.

This came amid a mixed bag of economic reports. As I mentioned in last Friday’s ���Ҵ�ý 360, the CPI (Consumer Price Index) report was solid, showing inflation came in below economists’ expectations. The PPI (Producer Price Index) report, on the other hand, was downright disappointing. Meanwhile, the retail sales report was neither good nor bad… and that’s exactly what we wanted. Remember, a lackluster report puts more pressure on the Federal Reserve to cut key interest rates.

Speaking of the Fed, the annual Jackson Hole Economic Policy Symposium is set to kick off on Thursday. And with the likelihood of a September interest rate cut rising, the spotlight will be on Fed Chair Jerome Powell’s remarks at this event.

To get more thoughts on this, I had a couple of special guests on this week’s Navellier ���Ҵ�ý Buzz: My friend and colleague, Jason Bodner, and Tammy Marshall, known as the “Fibonacci Princess.”

This week, we talked about what we’re expecting to hear from Powell. Plus, we went over a few stocks that I’ve received a lot of questions on, including Eli Lilly & Co. (LLY) and Super Micro Computer, Inc. (SMCI). We also talked about a few big retailers with earnings set to come out this week, like Home Depot Inc. (HD), Lowe’s Companies Inc. (LOW) and Target Corp. (TGT).

Click the image below to watch now.

Don’t forget to subscribe to my YouTube channel here. If you’re not familiar with Jason and his “Money Flow” system, check out his website here. And you can check out Tammy’s YouTube channel here.

A “Hidden” Reason Why Trump Wants a Rate Cut

As I mentioned earlier, the Jackson Hole symposium is coming up on Thursday, and there’s one person who’ll be watching like a hawk: President Trump.

He hasn’t been quiet about his feelings for the Fed and how rate cuts should have come sooner. And while there are a number of reasons why the President wants a cut, there’s one that barely gets any attention.

See, President Trump is desperate to jump-start growth in the U.S. economy. Not only because mid-term elections are coming up soon… but because the U.S. is losing ground in the AI race.

To catch up, he’s going to need help from a little-known sector that is critical to AI’s success.

In fact, Trump has already fast-tracked some of these companies to ensure that they have everything they need to fuel the next phase of the AI Revolution.

That’s why I put together an exclusive briefing to tell you everything you need to know. I’ll even tell you about the three companies I believe are the most well-positioned for profits.

Click here to watch now.

Sincerely,

Louis Navellier

Editor, ���Ҵ�ý 360

The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

Eli Lilly & Co. (LLY) and Super Micro Computer, Inc. (SMCI)

The post Powell at Jackson Hole + 13 Big Stock Questions This Week appeared first on InvestorPlace.

Silver is as “good as gold.”

Actually, it’s a better buy than gold right now.

That’s not my opinion. It’s the “opinion” of an ancient trading indicator called the silver-to-gold-ratio, or SGR. Whenever this indicator falls to readings that are as low as they are today, the silver price rallies… usually a lot.

For most of the last 30 years, the SGR has ranged between lows around 1.2 and highs around 3.1 – meaning that the price of silver has ranged from 1.2% of the gold price to 3.1%.

The rare moments when this ratio traded below 1.27% signaled great moments to buy silver.

A reading that low has occurred only eight times during the last 30 years. In absolute numbers, here’s what the silver price did in each case. After the ratio hit…

• 1.25% in 1996, silver advanced 60% over the next 15 months.
• 1.24% in 2003, silver tripled over the next three years.
• 1.26% in 2008, silver skyrocketed 370% over the next three years.
• 1.20% in 2016, silver bounced 38% over the next five months.
• 1.10% in 2019, silver nearly doubled in little more than a year.
• 0.9% 2020, an all-time low, silver doubled in less than six months.
• 1.05% in 2022, silver soared 79% in less than two years.

Incredibly, during each of these rallies, silver not only outperformed gold, but it also outperformed the S&P 500, which demonstrates silver’s value as portfolio hedge.

Earlier this year, the SGR ratio dipped below 1.27% once again when it hit a low of 1.0% on April 21. Since then, the white metal has advanced 16.2% – a solid gain, but far behind the S&P 500’s 25.7% return over the same time frame.

Nevertheless, if past is prologue, the silver price will continue chugging higher and surpass the S&P eventually.

But today’s low SGR reading is not the only reason silver could soar over the coming months. Persistent silver supply deficits are also adding to the bullish cocktail.

Additionally, silver could attract “safe haven” buying from folks who worry about simmering geopolitical tensions and/or rising U.S. indebtedness.

These exact concerns are why I recommend an ETF that holds substantial assets in physical silver to my Fry’s Investment Report members.

To help support that recommendation, I quoted the astute financial writer James Grant when he observed…

Gold is a bet on monetary disorder – indeed, on other kinds of disorder, too, including fiscal, geopolitical and presidential.

Although these three disorders are continually evolving, they’re still hanging around, which is probably why the gold price is still hanging around its record high. This suggests the yellow metal “sees” trouble that is not yet visible to the human eye.

Bottom line: A confluence of influences are combining to drive the silver price higher.

To learn how to access my silver recommendation, simply click here.

Now, let’s take a look back at what we covered here at Smart Money last week…

Smart Money Roundup

How to Invest Before “AI Day Zero” – The Biggest Wealth Event Since the Internet

August 13, 2025

Every few decades, a single word can define an entire era of wealth creation. “Plastics” in the 1960s… “Yahoo” in the dot-com boom… “iPhone” in the mobile era.

Today, that magic word is “Physical AI,” when AI steps out of the cloud and into the real world. To help investors get ahead of this next wave, we recently released a new broadcast unveiling our Day Zero Portfolio – seven cutting-edge stocks leading the real-world AI revolution.

AI Is Minting New Billionaires – Here’s How to Join Them

August 15, 2025

When it comes to artificial intelligence, more is more. More AI also equals more billion-dollar tech companies… and, thanks to their high valuations, more billionaires.

As AI continues to accelerate, most of the wealth will flow to the top 1 percent of investors and companies who leverage technology, while 99% of investors and businesses will get caught off guard and fall behind.

I want to teach you how to stay ahead of this technology-driven wealth divide, and show you how to position yourself to profit as AI continues making not just billionaires, but breakthroughs – especially in world of “Physical AI.”

Missed the Digital AI Boom? This Is Your Second Shot

August 16, 2025

The AI boom isn’t slowing; it’s shifting. We’re moving from chatbots and code to machines that think, move, and build in the real world. This Physical AI Revolution is about to create the next wave of market winners, and the biggest returns will go to those who position themselves before Wall Street piles in.

My InvestorPlace colleague Louis Navellier shares exactly where the smart money is heading in the next phase of the AI boom – and how you can stake your claim now before these stocks go vertical.

Say Hello to the $400 Billion AI Bazooka Aimed at the ���Ҵ�ý

August 17, 2025

The loudest voices in the market are currently the doubters, warning that the tech rally has gone too far. But they’re missing the single most important fact driving today’s markets: Big Tech is unleashing hundreds of billions of dollars on AI infrastructure. InvestorPlace Senior Analyst Luke Lango explains the $400 billion AI Bazooka aimed at the market… and how the AI Bazooka always finds its target.

Looking Ahead

AI has been top of mind here at Smart Money recently.

As I’ve been saying for a while now, it is the lens through which we have to make all of our investment decisions now.

This is because AI will enable thousands of innovative companies to flourish and enrich their shareholders. But at the same time, it will cut a swathe of destruction through the ranks of companies who fail to adapt.

That’s why this exciting, and terrifying, new era demands a radical rethinking of investment strategy.

I’ve identified four distinct AI investment categories, each of which offers different levels of risk and reward. From this day forward, every stock you consider should fall into one of these four categories.

I will dive deeper into these categories in your next Smart Money. So, be sure to keep an eye out on your inbox!

Regards,

Eric Fry

The post History Says Silver’s Next Move Could Be Explosive appeared first on InvestorPlace.

This Week’s Ratings Changes:

Upgraded: Buy to Strong Buy

Downgraded: Strong Buy to Buy

Upgraded: Hold to Buy

Downgraded: Buy to Hold

Upgraded: Sell to Hold

Downgraded: Hold to Sell

Upgraded: Strong Sell to Sell

Downgraded: Sell to Strong Sell

To stay on top of my latest stock ratings, plug your holdings into Stock Grader, my proprietary stock screening tool. But, you must be a subscriber to one of my premium services. Or, if you are a member of one of my premium services, you can go here to get started.

Sincerely,

Louis Navellier

Editor, ���Ҵ�ý 360

The post Weekly Stock Grader Analysis: Upgrades & Downgrades on Top Blue-Chip Stocks appeared first on InvestorPlace.

And the same is true in the market. The loudest voices are currently the doubters, warning that the tech rally has gone too far.

But they’re missing the single most important fact driving today’s markets: Big Tech is unleashing hundreds of billions of dollars on AI infrastructure.

This isn’t hype. It’s the largest capital deployment wave in modern history, concentrated in one sector.

And when that much money is aimed at a single target, the result isn’t a fad – it’s a financial superweapon.

InvestorPlace Senior Analyst Luke Lango is joining us today to share more about the $400 billion AI Bazooka aimed at the market… and how the AI Bazooka always finds its target.

Take it away, Luke…

The skeptics are out in force. They’ve got charts, historical parallels, and breathless warnings about bubbles, overvaluation, and “too much too soon.” They’ve got a laundry list of reasons why AI stocks can’t keep soaring.

I’ve got one reason why they’re all wrong…

It’s shockingly simple: Most money in the modern economy is going to AI.

That reason behind this AI delegation is why AI stocks have been soaring, and it’s why they’ll keep soaring.

And when you follow the money, the trail doesn’t just point to AI – it leads straight to the beating heart of the global economy itself.

Big Tech Is the Global Economy

Let’s stop pretending otherwise: Big Tech doesn’t just influence the global economic order — they are the global economic order. Nvidia (NVDA), Microsoft (MSFT), Apple (AAPL), Alphabet (GOOGL), Amazon (AMZN), Meta (META), Broadcom (AVGO), Taiwan Semiconductor (TSM), Tesla (TSLA) — the valuations alone tell the story.

They are all trillion-dollar companies. If Nvidia and Microsoft were countries, they would rank as the fifth and sixth largest economies in the world, bigger than India, the U.K., France, Italy, Brazil, Canada, Russia, and Mexico. Big Tech’s balance sheets make most nations look like they’re running lemonade stands.

And these are the behemoths that are going all-in on AI spending.

Not dabbling. Not cautiously allocating. They’re loading up a financial superweapon — what I call the AI Bazooka — and firing it almost exclusively at expanding AI infrastructure.

The AI Capex Explosion

The numbers are staggering. Let’s start with Meta.

Once upon a time (as recently as 2022), Meta’s annual capital expenditures hovered around $20 billion. That’s a lot of servers and networking gear, but in Big Tech land, it was business as usual. Now? Over the next 12 months, Meta is expected to spend nearly $90 billion — more than 4x in just three years — with the bulk aimed straight at AI infrastructure.

They are not alone.

Before COVID, Microsoft was consistently spending less than $15 billion a year on capex. Over the next year, they’re also expected to cross the $90 billion mark — a 6x increase in six years.

Alphabet? Annual capex was about $20 billion in 2021. This year: $95 billion.

And the grand champion of AI spending — Amazon — is set to drop more than $120 billion over the next 12 months, up about 7.5x from 2019.

Put it together, and the “Hyperscale 5” — the five largest U.S. hyperscale cloud operators who own the lion’s share of AI compute capacity — are expected to spend over $400 billion on capital expenditures in the next year alone.

In late 2022, before ChatGPT exploded into the public consciousness, that collective number was under $150 billion.

In less than three years, we’ve seen a 2.5x increase — and it’s still accelerating. Just look at that chart above. Like AI stock prices, it’s going vertical.

What Makes This Different From Any Other Spending Cycle

Tech spending cycles are nothing new. But this is different in three important ways:

That’s why I call it the AI Bazooka. It’s the concentrated firepower of the world’s richest corporations, aimed squarely at one target: AI dominance.

Where the AI Bazooka Money Lands

All that money has to find a home, and Wall Street has been more than happy to receive it. The beneficiaries are spread across the entire AI supply chain.

Raw Materials

• MP Materials (MP) – Rare earths supplier up nearly 600% in the past year.
• Commodity producers feeding chip and component manufacturers are seeing their order books fill years in advance.

Chip Foundries & Compute Engines

• Taiwan Semiconductor (TSM) – Up 250% since ChatGPT’s launch.
• Nvidia (NVDA) – The poster child of the AI boom, up over 1,500% in five years.

Memory & Storage

• Micron (MU), Western Digital (WDC), Seagate (STX) – All screaming to 52-week highs.

Semiconductor Equipment

• ASML (ASML), Lam Research (LRCX), Applied Materials (AMAT) – Selling the pickaxes in this gold rush.

Interconnect & Networking

• Astera Labs (ALAB) – Up nearly 4x since April.
• Marvell (MRVL), Rambus (RMBS) – Essential for the high-speed data movement AI demands.

Datacenter Networking & Optics

• Arista Networks (ANET) – Red-hot networking leader.
• Lumentum (LITE), Coherent (COHR) – Optics stocks hitting all-time highs.

Power Generation & Energy Grid

• Constellation (CEG) – Up 50% this year.
• Vistra (VST) – Up 170% in the past year.
• Quanta Services (PWR), Eaton (ETN) – Building the AI-powered grid.

Cooling & Infrastructure

• Vertiv (VRT) – Cooling solutions darling.
• Dell (DELL) – Server rack integrator on a tear.
• Digital Realty (DLR), Equinix (EQX) – Datacenter developers cashing in.

This is the blast radius of the AI Bazooka. These stocks have been winning, and so long as the bazooka keeps firing, they’ll keep winning.

Why This AI Spending Boom Won’t Stop

The big question: Is this just a temporary surge, or a sustained trend?

Our view: It’s only just getting started.

Over $400 billion is expected to pour into AI infrastructure in the next 12 months. By 2030, we expect annual AI capital expenditures to approach $1 trillion. Big Tech’s appetite is insatiable, as every new AI model demands more compute, more storage, more bandwidth, more power.

The more they spend, the more AI integrates into daily life, which then drives even more spending. It’s a self-fueling industrial build-out on a scale the world hasn’t seen since the post-WWII economic boom.

So when pundits say AI stocks can’t keep going up, they’re ignoring the single biggest capital allocation trend in the world.

It’s not just that Big Tech wants to dominate AI. They must. The competitive stakes are existential. The company with the most compute wins the AI race. That’s why they’re emptying their vaults into chips, datacenters, and power grids.

Wall Street isn’t dumb. It follows the money. And right now, the money — all the money — is headed into AI.

The Bottom Line on AI Stocks

The AI Bazooka is locked, loaded, and firing hundreds of billions of dollars into one of the most powerful technological buildouts in history. The winners are clear: AI infrastructure stocks, from chipmakers to cooling providers, are riding the blast wave.

As long as Big Tech keeps spending (and they will), these stocks will keep ripping higher. The skeptics can cling to their valuation charts and bubble metaphors. The rest of us will follow the money.

Because in this market, the AI Bazooka always finds its target.

Click here to learn what AI stocks I recommend.

Regards,

Luke Lango

Editor, Hypergrowth Investing

The post Say Hello to the $400 Billion AI Bazooka Aimed at the ���Ҵ�ý appeared first on InvestorPlace.

Warren Buffett’s right-hand man was onto something. Imagine if someone could avoid every possible car crash and physical disaster. Their life would last significantly longer, even if not indefinitely.

The same is true for investing. If you had a magic sorting hat that could separate every stock that goes down, the remaining companies would consist entirely of winners… making it virtually impossible to underperform.

It’s much like the Eat This, Not That books that suggest readers consume Big Macs (540 calories, 29g fat) instead of the Cheesecake Factory’s Chicken and Avocado Salad (1,830 calories, 130g fat).

Fortunately, we don’t need to be in a magical world (or on a diet) to obtain that kind of advice.

Consider bond ratings – a relatively objective view of a company’s financial health. Of the 376 S&P 500 companies rated by Moody’s in 2020 that still actively trade, here’s how they have performed:

• Prime-1 (Aaa through A3): +74.7%
• Prime-3 (Baa1 through Baa3): +53.1%
• Not Prime (Ba1 and lower): +52.2%

Simply avoiding companies rated “Not Prime” would have meant achieving far better returns at lower risk. The outperformance is even greater if you consider the junk-rated firms that went bankrupt and no longer trade, such as Pioneer Natural Resources and Rite Aid.

In a new presentation, legendary investor Eric Fry puts this concept into overdrive – recommending stocks that will soar while getting out of companies set to plummet.

Essentially, he believes we’re entering an Age of Chaos, where previously reliable, household names are upended by a surge of dynamic, surprising companies that are poised to grow faster than we’ve seen before.

You can watch that presentation here.

In the meantime, I’d like to illustrate this concept with three companies in the basic materials sector, the industry that mines the earth for raw materials. Through this, it will become clear how Eric’s “Buy This, Not That” strategy can provide strong long-term returns, no matter how obvious the thesis might seem.

Buy This…

When I consider basic materials companies, the most important factor I consider is whether demand for the underlying commodity is:

Poorly run extraction firms with high-cost assets can succeed if the world needs more of a product. (In fact, high operating leverage means the fundamental value of high-cost miners typically rises faster than low-cost ones during a commodity boom.) Meanwhile, even the best-run miners with low-cost assets will suffer when commodity prices fall.

That leads us to Tronox Holdings PLC (TROX), one of the “Big 3” American producers of titanium dioxide (TiO2).

TiO2 is a whitening compound found in paints, plastics, paper… and even in toothpaste and sunscreen. It is also widely used in coatings and industrial greases for its heat stability and wear resistance.

This industrial exposure makes TiO2 a relatively cyclical commodity. If consumers are buying fewer new cars and houses, there’s far less demand for the white paints and coatings that companies like Tronox provide. The vertical integration of the “Big 3” producers further exaggerates these cycles, because this reduces supply elasticity.

Today, shares of Tronox trade as if the underlying demand for TiO2 will entirely disappear. Shares trade at under $4, well below the more typical $15 to $20 range of normal periods. We saw similar drawdowns during the 2016 and 2020 market cycles.

Yet, we all know that the world has not moved on from TiO2. Houses still need to be primed and painted. Cars need protective coatings. One might even argue that the AI data center boom is benefiting TiO2 sales as operators seek to cut cooling costs with white roofs. We haven’t found a substitute yet for the titanium-based pigment.

That should benefit Tronox, which has seen a flurry of insider buying over the past several weeks, a typically bullish sign.

• Three members of the Board of Directors bought 70,000 shares between August 5 and August 13
• The Chief Financial Officer bought 37,000 shares on August 1
• The Commercial and Strategy Officer bought 12,600 shares on August 1
• The CEO bought 100,000 shares on August 1

And so, despite the risks surrounding Tronox’s leveraged balance sheet and junk-bond rating, shares should recover 3X in the coming two to three years as demand normalizes.

The stock may have a 20% chance of going to zero if the down-cycle persists longer than Tronox’s cash can hold out… but it also has an 80% chance of rising back into double digits. If you’re willing to make that kind gamble, then TROX is a bet worth taking.

… And This…

Meanwhile, the three materials-focused firms I recommended in early July are already up double digits:

• Albemarle Corp. (ALB): +23%
• Plug Power Inc. (PLUG): +17%
• USA Rare Earth Inc. (USAR): +76%

That’s because these three companies all have one thing in common:

The AI robotics revolution.

Over the coming decade, the world will be seeing far more self-driving cars, humanoid robots, and AI-powered machines. And that means far greater demand for the lithium-ion batteries and hydrogen fuel cells that power these devices. After all, no one will want a gas-powered robot operating in their house.

I’d like to reiterate a “Buy” in Albemarle this week.

Last Monday, news broke that China’s largest battery maker, Contemporary Amperex Technology Co. Ltd. (CATL), was forced to halt production at its biggest mine after a license expired. The disruption fueled a lithium rally that began in late June, and prices are up 30% since the start of the rally.

At the same time, industrial firms are accelerating the shift from traditional lead-acid batteries to lithium-ion. On Tuesday, forklift maker Raymond Corp. unveiled a new “drop-in” lithium iron phosphate battery system, enabling forklifts to swap power packs in seconds. This innovation could also speed adoption of lithium-ion in industrial robots.

Coupled with rising solar power generation, these developments signal that lithium demand will rise, not fall, as AI technology advances. With low-cost Chilean assets and a fortress balance sheet, Albemarle is well-positioned to benefit, even if the recovery takes longer than expected.

… but Not That

On the other hand, not every basic material company is benefiting from the AI Revolution. And among the companies to avoid here is Alliance Resource Partners LP (ARLP), America’s second-largest coal producer.

The coal industry in the Eastern U.S. is not healthy. Decades of extraction mean that the lowest-cost deposits in the Appalachian region have already been mined. Firms in Pennsylvania and West Virginia must contend with digging ever deeper (at higher cost) to extract the remaining anthracite coal.

Meanwhile, coal from the Illinois Basin has become increasingly cost-prohibitive as well. These high-sulfur, lower-grade deposits gained popularity in the 1950s as a substitute for Appalachian coal but have since lost competitiveness to newer reserves from Wyoming’s Powder River Basin.

“Twenty years from now, most of the Illinois Basin coal industry will be gone,” analysts  for the Institute for Energy Economics and Financial Analysis (IFEEFA) wrote in 2019.

Alliance Resource Partners has the misfortune of operating in both high-cost regions. The company expects to mine 25.4 million short tons of Illinois Basin coal this year, and 8.0 million short tons of Appalachian coal. Earnings per share fell 40% last year and are expected to slide another 20% this year.

Some may hope for a turnaround. America’s power grid has become strained by added demands from AI data centers, and President Trump has promised to “Reinvigorate America’s Beautiful Clean Coal Industry” through an April executive order.

However, high-cost producers like Alliance Resource Partners will face stiff competition from cheaper rivals in the Powder River Basin, where strip-mined coal costs less than one-third the price of Illinois Basin coal and about one-sixth that of Appalachian coal. It’s no surprise that other Illinois Basin operators, including Murray Energy and White Stallion Energy, have recently filed for bankruptcy.

ARLP will also face substitution from natural gas, which typically has low extraction costs.

So, investors shouldn’t hold their breath for a recovery in ARLP. No matter how well-managed a mining firm is, it can’t escape the basic economics of unattractive “sunset” assets.

An Immediate Buy

Tronox and Albemarle only scratch the surface of the AI Revolution. After all, these companies sit at the very top of supply chains. Most value is usually gained further down.

That’s why I highly recommend you watch Eric’s latest presentation. In this new free broadcast, Eric shares seven free “Sell This, Buy That” recommendations – complete with names and tickers.

Among these ideas are one company to replace Amazon.com Inc. (AMZN), another to rival Tesla Inc. (TSLA), and a third to upset Nvidia Corp. (NVDA).

These little-known stocks are poised to overtake these three reigning AI darlings, Eric says. He believes you can use them to protect and multiply your money in these make-or-break markets.

Check it out here.

And I’ll see you back here next week.

Regards,

Thomas Yeung, CFA

���Ҵ�ý Analyst, InvestorPlace

Thomas Yeung is a market analyst and portfolio manager of the Omnia Portfolio, the highest-tier subscription at InvestorPlace. He is the former editor of Tom Yeung’s Profit & Protection, a free e-letter about investing to profit in good times and protecting gains during the bad.

The post 2 Stocks to Buy… and 1 to Sell Immediately appeared first on InvestorPlace.

A second space race is already underway, and it’s shaping up to be one of the most powerful industrial trends of the next two decades. From Moon bases to nuclear-powered habitats, the future of space is no longer science fiction — with the following space stocks, it’s investable reality.

Why Space Stocks Are Heating Up

At the heart of this new wave is NASA’s Artemis program, a multistage effort designed to return humans to the Moon and establish a permanent presence there.

But Artemis is only the beginning. As national space programs accelerate and private industry steps in, governments worldwide are pouring staggering sums into the space economy — with applications across defense, infrastructure, robotics, and clean energy.

• The U.S., China, EU, Russia, Japan, and India are all significantly increasing their space budgets.
• Space infrastructure — rockets, landers, satellites, and reactors — is now a geopolitical priority.
• Investors have an opportunity to position early in an underowned, underanalyzed sector.

Pure-Play Space Stocks: Direct Exposure to the Moonshot

If you’re looking for high-conviction bets in Space Race 2.0, start with these specialized companies:

Rocket Lab (RKLB)

• Specializes in small and medium payload launches.
• Electron rocket is operational; Neutron rocket is on the way.
• Strong advantage in launch cadence and frequency.

Intuitive Machines (LUNR)

• Builds lunar landers under NASA’s CLPS program.
• Nova-C lander already selected for Moon cargo runs.
• Key player in Artemis logistics.

Redwire (RDW)

• Designs orbital construction tools and 3D printing systems.
• Active in Artemis and commercial in-orbit manufacturing.
• A leader in “factories in space” development.

Planet Labs (PL)

• Operates high-resolution Earth-imaging satellites.
• Supplies data to governments, researchers, and businesses.
• Vital to real-time decision-making on and off Earth.

AST SpaceMobile (ASTS)

• Building a satellite-to-smartphone broadband network.
• Could enable Moon-to-Earth communications without ground towers.
• Partners include major global telecoms.

BlackSky Technologies (BKSY)

• Provides real-time geospatial intelligence.
• Applications in defense, agriculture, and logistics.
• A crucial data provider in space mission planning.

Voyager Technologies (VOYG)

• Offers all-in-one space and defense solutions.
• Builds propulsion systems, ISR tech, and space infrastructure.
• Positioned for multiple government contract wins.

Firefly Aerospace (FLY)

• Recently went public.
• Builds rockets and landers with full-stack lunar mission capability.
• Secured multiple NASA contracts, including for the Blue Ghost lander.

Beyond Pure-Plays: The Broader Space Economy Stocks

You don’t have to invest in speculative startups to benefit from Space Race 2.0. Established companies are also positioned to thrive.

Defense & Aerospace Giants

• Lockheed Martin (LMT), Northrop Grumman (NOC), Boeing (BA), L3Harris (LHX)
• All are embedded in NASA and Department of Defense contracts.
• Offer long-term growth, dividends, and reduced volatility.

Nuclear Power: The Stealth Catalyst

NASA plans to install a 100-kilowatt nuclear fission reactor at the Moon’s south pole by 2030.

Top nuclear stocks tied to this initiative include:

• BWX Technologies (BWXT) – Partnered with NASA for nuclear propulsion.
• Centrus Energy (LEU) – Produces advanced HALEU fuel.
• Oklo (OKLO) – Building microreactors for remote applications.
• NuScale Power (SMR) – Developing small modular reactors for Earth and space.
• Constellation Energy (CEG) – The largest U.S. nuclear power provider, benefiting from rising demand.

Why Space Stocks Are Still Under the Radar

Despite the enormous potential, space stocks are still flying under Wall Street’s radar.

AI and EVs dominate the headlines, while space investing is still seen as niche or speculative. That’s exactly why now may be the perfect time to build exposure.

History shows that the biggest market winners often emerge from overlooked themes. And by the time the mainstream catches on, the easy money is already gone.

🤔 FAQ: Investing in the Space Economy

What are the best space stocks to buy in 2025?

Top names include Rocket Lab (RKLB), Intuitive Machines (LUNR), Redwire (RDW), and Planet Labs (PL) for pure-play exposure. For more stable exposure, consider Lockheed Martin (LMT) or Northrop Grumman (NOC).

Is the Artemis program a real investing catalyst?

Yes. NASA’s Artemis program is funded and underway, with global coordination and commercial contracts already issued. It’s the foundation of Space Race 2.0.

Why are nuclear stocks relevant to space investing?

NASA’s lunar missions will rely on nuclear energy for power and propulsion. Companies like BWX Technologies (BWXT) and Centrus Energy (LEU) are already contracted or producing enabling technologies.

Are space stocks risky?

Some are. Small-cap space companies offer high-upside potential but come with volatility. Large defense contractors offer a more balanced way to gain exposure.

How big is the space economy projected to become?

Analysts project trillions of dollars in global space spending over the next 20 years — covering infrastructure, communications, energy, and defense.

The post 17 Stocks to Play Space Race 2.0 appeared first on InvestorPlace.

This Physical AI Revolution is about to create the next wave of market winners, and the biggest returns will go to those who position themselves before Wall Street piles in.

My InvestorPlace colleague Louis Navellier is joining us today to share exactly where the smart money is heading in the next phase of the AI boom – and how you can stake your claim now before these stocks go vertical.

Take it away, Louis…

I’ve spent over four decades tracking technological disruption, from the rise of personal computing in the ’80s to the dot-com boom to cloud computing and smartphones… and now artificial intelligence.

Over that time, I’ve learned something critical…

The biggest financial opportunities don’t come from what the media is talking about today. Instead, they come from what most people still can’t see clearly yet. And most often, that’s the second wave of a major shift.

That’s when the real transformation begins.

We’re seeing that play out with AI right now. While the media focuses on chatbots, large language models and digital assistants, a far more important evolution is happening in the real world.

You see, AI is stepping off the screen and into the physical world – powering machines that don’t just act, but think.

We’re talking about robots that can see, move, build and perform jobs that used to require teams of skilled people. And they’re getting smarter, faster and cheaper by the day.

I call this the PhysicalAI Revolution – and I believe it will be one of the most important investment trends of the next decade.

So, today, I’ll show you why this shift matters, what most investors are missing and how you can position yourself early, while the biggest gains are still ahead.

The Robotics Revolution Is Happening Right Now…

I should note that this trend isn’t limited to the business world, either. Just look at Sony Group Corp.’s (SONY) AI-powered companion robot, called aibo.

With the appearance of a dog, aibo responds to voice commands, recognizes faces, learns routines and even develops a unique personality over time. It can express emotions, adapt to its owner’s preferences and interact in ways that feel lifelike.

That’s real-world AI – not on a screen, but walking around your living room.

This is just the tip of the iceberg, folks. We’re seeing robots compete in soccer games, half marathons, and more. Amazon.com, Inc. (AMZN) has over a million robots in its warehouses and is testing humanoids that can hop out of delivery vans and bring packages to your doorstep. Tesla, Inc.’s (TSLA) Optimus humanoid robot is learning to fold laundry and perform basic factory tasks, with plans for wider rollout.

Deere & Company (DE) is deploying fully autonomous tractors that can plow, plant, and harvest with no one in the cab. Xiaomi operates “dark factories” in China, producing a smartphone every second without human labor. In some restaurants, AI-powered servers glide between tables delivering food without missing a beat.

The Next Frontier

This begs the question…

If we’re already seeing robots run races and giving them a spot on the couch, how long before they’re helping in kitchens, managing stores or assisting in hospitals?

Folks, the Physical AI Revolution is happening at a rapid-fire pace. And it’s going to reshape the world even more dramatically than digital AI.

It reminds me of the early days of Amazon – back when most people thought it was “just a bookstore.” But under the surface, it was quietly building the most advanced logistics and fulfillment network the world had ever seen. That’s where the real value was being created. And if you saw it early, you could have turned a modest investment into a fortune.

The same thing is happening with Physical AI. Wall Street is chasing the obvious, headline names — the companies everyone already knows. But the real upside is in the firms quietly building the hardware, intelligence systems, and infrastructure that will power the next generation of automation.

So, how exactly can you spot a good robotics company? Well, let me tell you exactly what I look for when I evaluate them – and how you can tell the difference between a hyped-up startup… and a true game changer…

What to Look for in a Robotics Innovator

The fact is, folks, not all robotics companies are created equal.

Just like during the internet boom and the first wave of AI software, we’re going to see a flood of companies making bold promises. They’ll throw around buzzwords and put up impressive demos on YouTube. But only a small group will deliver real, lasting value.

Now, I don’t chase headlines. To put it simply, I look for substance. The companies that deliver real returns. The ones whose market caps go from $500 million to $5 billion, and sometimes far beyond.

They all share a few critical characteristics:

Once I find a company that hits these four points, I use my Stock Grader system (subscription required) to cut through the noise and see what the fundamentals say. Does the company have accelerating sales? Margin improvement? Institutional interest? Positive cash flow trends?

These are the signals that help separate the next big winner from the flavor of the month.

Separating the Winners From the Losers

Here’s something most people miss…

Robotics has higher barriers to entry than software. Writing code is one thing. Designing, manufacturing and scaling intelligent machines that can safely operate in the real world is another.

That’s why the companies building the “picks and shovels” for this revolution – the sensors, chips, actuators, and infrastructure – are positioned to profit no matter which specific robots win.

But separating the winners from the losers can be difficult. That’s why I teamed up with my fellow InvestorPlace colleagues Eric Fry and Luke Lango to focus on the crème de la crème of AI-powered robotics.

In the end, we came up with seven stocks we believe are the best Physical AI and robotics plays to own right now.

We call it the Day Zero Portfolio.

In fact, we just released an urgent briefing to share everything we’ve discovered about this powerful new shift and what we see coming. Not only that, but we also share the name and ticker symbol of our No. 1 way to play this move… completely free of charge.

Click here now to watch the briefing before this takes off.

Sincerely,

Louis Navellier

Editor, ���Ҵ�ý 360

The post Missed the Digital AI Boom? This Is Your Second Shot appeared first on InvestorPlace.